Impact of Coronavirus Pandemic on Digital Currency

The covid-19 outbreak has caused the whole world to shut down at once. Small gatherings and even shaking hands are not allowed for safety purposes. Then it gives way to cashless forms of payment. Many governments all over the world saw the efficiency of digital payments to deal with daily economic transactions. It promotes convenience while reducing the risk of spreading the virus. 

At the same time, many digital platforms and e-commerce experienced a rapid increase in traffic. This is because the recent pandemic forced companies to enhance their online presence and digital offerings. 

Here are the major movements since mid-2020 that will continuously rock the economy for the next decade:

Banks Go Digital

If you do not go digital during this time, the battle will be over in no time. Apart from people’s health security, it is also important for each of us to manage our finances remotely. As a result, monetary authorities worldwide boosted their online banking services. Digital currencies became an alternative mode of transactions in an increasingly digitized world.

CBDCs or Central Bank Digital Currencies is a digital form of hard currency that is accredited and issued by the central bank itself. They are commonly mistaken as cryptocurrency. Generally, crypto coins are not backed by national banks. For example, in China, the only government-backed cryptocurrency is Digital Yuan. 

As you reflect, CBDCs already garnered significant progress in 2019 when Facebook announced its own digital currency, Libra. Covid-19 does not only change people’s daily routine. It awakens policymakers to pursue CBDC research and development. But not all countries have this great capacity. 

Other places are still on the “idea” and not yet on the study itself. Some say they are willing to adopt but not yet in a hurry. Are there options for people in other countries who don’t offer CBDCs? Yes! This is where cryptocurrencies take place.

Cryptocurrencies Arise

Digital development has also continued to offer the exchange of cryptocurrencies internationally. As discussed earlier, anyone in the world can invest in the crypto market. Yes, it is a volatile industry and this is the reason why you should put your money in Yuan Coin. 

Even Bitcoin is not backed up by its national bank, e-Yuan on the other hand is supported and centralized by the Chinese government. There are a lot of perks when you invest in this secured crypto coin. You can only keep it inside a banking app called the Digital Renminbi Wallet. You are not only protected by blockchain technology. Most importantly, the national bank got you covered.  

Money Making Game-Apps Emerge

Nope! We are not talking about prominent online games like Mobile Legends. There are many more game apps where you can earn money using your smartphone. In 2021, there are these newly developed online games where you can play using cryptocurrency.

The newest of them all is called Axie Infinity which uses Ethereum-based cryptocurrency. Game and cryptocurrency can actually go hand in hand. It’s like a trading and battling app where players can collect, raise, breed, and trade their crypto coins in a more fun and exciting way. In third-world countries, cryptocurrency games have become the main source of income for a lot of people. 

Digital currency is booming and growing opportunities. Whether you want it to be your side hustle, part-time job, the main source of money, or just spare time, there are endless options. First things first, if you want to leverage your current resources, never hesitate to invest in cryptocurrency.