Guardtime: “pandemic has accelerated release of CBDC by five years”

According to a study by the European blockchain company Guardtime, in connection with the COVID-19 pandemic, central banks of various countries have significantly accelerated the development of digital currencies.

Analysts noted that the pandemic has led to explosive growth in technology companies, digital infrastructure and telecommunications. Digitalization has increased significantly around the world, and the share of non-cash payments has increased dramatically. Against this backdrop, central banks have accelerated research and development in the area of ​​government cryptocurrencies.

According to analysts, in the next three years, at least one major state will launch its digital currency. However, given the full-scale testing of the digital yuan in China, this could happen even faster. Guardtime’s head of strategy, Luukas Ilves, says:

“Competition for the launch of state-owned cryptocurrencies is increasing. The launch of such an asset can radically improve the position of the country and its currency in the global economic arena. The coronavirus has not only accelerated digitalization, but also changed the way people use money. ”

Social distance has led to a significant increase in the share of online payments, and this is exactly the area in which government cryptocurrencies are most applicable. Guardtime analysts write:

“The development of state digital currencies has accelerated by five years. There is no doubt that soon the central bank of a large country will issue CBDC. We expect this to happen within three years. Digital currencies will optimize international trade, make it easier for the poor to access financial services, and make it harder to commit crime. However, there are technological difficulties in ensuring the scalability and security of such systems. ”

In mid-June, Bank of England’s Chief Financial Officer Tom Mutton said government digital currencies would become the safest money in the world.