Posted 1 year ago | by Ben Armstrong

BIS Backs CBDCs and Digital Payments amid Coronavirus Pandemic

The Bank of International Settlements (BIS) includes 600 members of international financial institutions who represent the central banks of 60 countries. The BIS has created a report to support central bank digital currencies, or CBDCs, as well as digital payments amid the COVID-19 pandemic.

According to the BIS report, central banks should consider in the development of CBDCs to combat the spread of coronavirus, as existing payment methods can spread any virus.

The BIS report points a significant negative move in consumer attitudes to using cash to respond as the World Health Organization (WHO) has warned about using cash. Of course, cryptos can also be used, but don't expect the mouthpiece of the central banking money cartel to stump for a competing system.

The BIS is a Central Bank's Club

The report not only reminds of the WHO’s concerns when it comes to physical money, but it also stresses the risk of coronavirus transmission through contact with credit card terminals and PIN pads, which is even greater.

From the BIS report:

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

The BIS mentions that the circulation of cash in the US is increasing, and ATM withdrawals are falling in the United Kingdom.

The report also forecasts that the coronavirus outbreak could, “lead to both higher precautionary holdings of cash by consumers and a structural increase in the use of mobile, card and online payments.”

CBDCs are a Boon to the Fiat System

According to BIS’s forecast, central bank operated payment infrastructures such as CBDCs would quickly gain prominence amid the current climate. CBDCs are needed to withstanding a wide variety of shocks, “including pandemics and cyberattacks”.

While advocating for a central bank digital currency, the BIS also warns that a move away from cash as a generally accepted means of payment, that “could open a ‘payments divide’ between those with access to digital payment and those without”.

The real problem isn't one of digital access, but access to the banking system. KYC checks are easy for a person in the USA, but many people in the world simply can't deal with the costs involved with the existing banking system.

Sadly, these people are also the most at-risk for a number of things, infection and degeneration from a virus included. Cryptos are the way forward, not another product from a money cartel which only serves the interests of a few powerful groups, and not the masses who need access to financial services.