Bank of International Settlements Issues Report on Central Bank Digital Currencies, Argues in Their Favor

The Bank of International Settlements has released a report advocating in support of central bank digital currencies (CBDCs) and virtual payments amidst the coronavirus outbreak.

It is to be noted that the Bank of International Settlements (BIS) is a six hundred-member international financial institution representing the central banks of sixty countries. The bulletin published by BIS recommends central banks to deliberate developing Central Bank Digital Currencies in light of apprehensions concerning the spread of coronavirus through prevailing payment approaches.

The report notes a substantial negative modification in customer attitudes concerning the use of cash in response to the WHOs warning regarding the spread of the deadly coronavirus by means of bank notes.

While the Bank of International Settlements echoes apprehensions of WHO, the aforementioned report emphasizes that the danger of the virus spread through contact with credit card terminals and PIN pads is even bigger. The report mentions,

“Scientific evidence suggests that the probability of transmission via banknotes is low when compared with other frequently-touched objects, such as credit card terminals or PIN pads.”

The report further mentions,

“In past crises, demand for cash has often increased, as consumers have sought a stable store of value and medium exchange.”