Effect of Coronavirus on Currency
China has declared that they’re going to be cleaning banknotes. The government has declared over the weekend that it’ll be separating decree transfer across Chinese regions. It’ll even be sanitizing the banknotes from unsafe areas. This can be a new measure to manage the spread of the Coronavirus. With this, Bitcoin’s decentralization, permissionless and digital attributes have commenced as a very important element of the new government measures.
According to CNBC, the People’s Bank of China organized to assign nearly 600 billion yuan(¥) ($86 billion) of the latest banknotes to the country.
The Central Bank’s deputy governor announced that “Money from key virus-hit areas will be sanitized with ultraviolet rays or heated and locked up for a minimum of fourteen days before it is distributed again”.
Currencies all around the world are carrying contamination because governments print money as paper and they later carry the viruses and bacterias, but this is not possible in the case of cryptocurrencies because it is Virtual Currency.
Cryptocurrency is based on the blockchain, and we can view all transactions on the blockchain because when we do a transaction, it will be saved in the blockchain and our transactions can be checked at any time.
We can transfer cryptocurrency anywhere in the world. This means that geographical location isn’t a barrier to enable a transaction. To do the transaction there will be no extra charges.
The control of cash by the govt. has been proof of why the world wants Cryptocurrency. First, its decentralization means the govt. cannot control its distribution or allocations as its been done currently.
Low Transaction Fees
Cryptocurrency transfers are peer-to-peer and need no centralized intermediaries, transaction prices are lowest. The decentralized system doesn’t charge conversion fees.
With the rise of digital payment platforms and methods, the use of cash has steadily declined. But several are still using cash particularly among the old. This continues to allow the spread of the Coronavirus and far and away a lot of different viruses. So it’s the best time to use cryptocurrency.