New Normal in the financial world that will change after the COVID-19 crisis.
Cashless Society will arrive faster
During the time of the Covid virus-19 scourge The use of cash, whether banknotes or coins, has been reduced as it is a good source of virus transmission. As well as transporting cash, it has become more difficult and most importantly, online shopping spending has increased due to the trend. work from home Social distancing
As a result, the transition to a fully cashless society may be faster because people may already be used to buying things online and begin to realize the disadvantages of using cash. This does not include applications for government financial aid that must be done online. All of this will accelerate Cashless Society Happens unconsciously
It's time to CBDC will seriously happen
In addition to online financial transactions Is there still an opportunity for central bank digital currencies? CBDC It might really happen after this.
โดย UNTIL The Bank for International Payments has issued a report indicating that the virus outbreak will lead to consumers changing their behavior to handle cash more cautiously. And there will be a method of payment via mobile phone. debit card Different credit etc. Including more online payment channels
UNTIL It is also predicted that the current situation may cause online payment infrastructure to rapidly gain popularity. And this might be a good opportunity to get out. CBDC This is because people are demanding digital media instead of cash.
while Deutsche Bank Major German banks has pointed out that virus outbreak COVID-19 Around the world at now It is an acceleration of central banks. etc. Turn to support and accelerate the creation of the family name. Cryptocurrency own (CBDC) widely
Cryptocurrency Might be more popular
In addition to central bank digital currencies In terms of digital currencies that run on the blockchain. Decentralize for example Bitcoin may come to play a greater role in the financial world As the world's major central banks cut interest rates to record lows.
The key is the Federal Reserve's unlimited printing of dollars. FED This could result in a long-term depreciation of the dollar due to oversupply. while Bitcoin It is set to have a limited supply. 21 million units If the demand for dollars does not increase It will cause the value of the dollar to decrease.
however Bitcoin There must also be increased demand for the inherent value to be expressed. In addition to having limited supply value,
While other digital currencies like Ethereum, Ripple, Litecoin etc There is a chance that it will be used more as the trend of online financial transactions increases. however Cryptocurrency will not be replaced yet Fiat Currency fully but will begin to play a greater role
The yuan will play a greater role and the emergence of the digital yuan.
at It is now clear that China, where the outbreak originated, is experiencing the fastest economic recovery. The IMF also estimates that China will be the only country that can maintain positive economic growth even just 1% But compared to other Asian countries and Western countries, it must be considered the most resilient.
Importantly, China still has the ability to recover economically through its own domestic activities with a huge population without having to rely heavily on tourism and exports because China is changing its economic structure. It's already a service sector.
A strong Chinese economy will lead to a stronger yuan that will challenge the dollar. And recently, Chinese officials have begun to reveal the progress of the Yuan digital currency. It was previously planned to launch this year but was delayed due to the spread of the virus.-19
After this, it must be closely followed to see how far China will use the situation in which it is recovering from the virus to expand the power of the yuan.
All this is New Normal of the financial world that may happen after this It is our duty to adapt to this new standard that will change the entire world within no more than 1-2 Definitely a year from now
