The pandemic caused crisis has driven people to try alternate technology solutions as blockchain and cryptocurrencies became more popular.
Crypto is a sphere where everything evolves quicker than in any other industry. It is quite apt since it was born in the Internet age. Today, China is the leader of the global digital asset initiative. The pace of innovation seems to be accelerated as the digital yuan (DCEP) has driven rapid development in distributed ledger technology.
Instead of digging its heels in swamping political chaos, the Chinese government shifted its attention to the advantages. The Chinese did not waste time. Despite being the country where the latest coronavirus originated from and has since had a huge impact on society and economy worldwide, technological development did not stop but rather continued at an astounding rate. McDonald’s and Starbucks are said to be among a consortium of 19 restaurants, retail shops, and entertainment companies involved in China’s digital yuan study. Part of a pilot program before the wider roll-out of the new digital currency. While the Chinese central bank’s digital currency looks to be only a few steps away from introduction, the world is vying for digital cash and fintech applications.
New trends in the digital landscape
The ongoing pandemic had a significant global impact and driven people to seek alternate solutions to avoid using the currency. Bitcoin (BTC) and Ether (ETH) are still common, but such assets are unlikely to become account units. However, Stablecoins and CBDCs can save the day. The People’s Bank of China reported that high-level design, setting industry standards, designing potential functions, and integration testing was almost complete.
In fact, the PBoC maintains that DCEP has outpaced the notorious Libra idea in terms of major technical features. Such as the ability to process offline purchases on mobile devices. It has also been reported that one of the goals of the DCEP is to facilitate the internationalization of the yuan as a means of making cross-border payments without the need to include intermediaries who charge a large fee and take a considerable amount of time to process these transactions.
Last month, we saw several central banks announce plans to experiment with CBDCs. Earlier this spring, the Bank of France officially launched an experimental program for a digital euro, testing the integration of a CBDC for interbank settlements. At the same time, a very similar plan was announced by South Korea’s central bank a week later.
There is plenty of room to expand the use of digital assets, and there must be no poor guidance. So, how can crypto improve daily life?
Trend 1: The Adjustment of Transfers and Remittances
Blockchain technology is used to reshape remittances and provide instant transfer options, increasing the threshold for apps that we use. From the local to the global cross-border level, fast and cheap payments are now in higher demand than ever before. Cutting-edge technologies that offer seamless functionality will make a difference and lead to the exponential growth of digital properties.
As Fintech is flourishing globally, top-notch apps have appeared on the horizon. Aximetria’s new app, a Swiss-based firm, allows users to make purchases in crypto and conventional currencies in one app while enjoying zero commissions. Clients can use the app regardless of nationality and place of residence. Other smartphone applications, such as the Coinbase wallet, have seamless crypto interfaces, offering a stable crypto portal for institutional investors.
Trend 2: The Provision of a Better Technology Layer
The speed of all processes, including blockchain, can increase dramatically due to constant blockchain innovations and updates. In fact, the crypto market has been cleared up since 2017 – until then, many malicious actors joined the scene.
The whole transition will be quicker as DLT reshapes other areas — from food and clothing production to complex international logistics, fields that have become increasingly important in the world since COVID-19 destroyed manufacturing and logistics.
Trend 3: Ensure Global Transparency
We can’t afford total freedom – it’s mostly a crypto-anarchist fantasy. CBDCs will be released sooner or later, related to government control, but accountability here lies in the inability to exploit and defraud, and corruption will naturally decline. Even the state administration will be an effective tool because we will see how the funds will be invested.
Recognizing Prospects in the Post-COVID-19 World
The rise of digitized national currencies is nearer than we thought. Moreover, after years of initial coin offerings and fraud cases, numerous illicit actors have begun to leave the blockchain scene. As such, we can see the advent of the next wave led by stablecoins and the DeFi lending opportunity.
Moreover, as the world markets collapsed and then fluctuated wildly due to the pandemic, Coin Metrics research pointed out the increasing role of stablecoins in March amid rising commissions and cryptocurrency spreads due to volatility. After the coronavirus outbreak began to impact global markets, the availability of stablecoins began to grow.
We’re quickly moving on our crypto learning curve. Tim Draper’s famous assertion stated that crypto would be mainstream in five years no longer seems feasible, as it will happen at a much quicker pace. We’re going to be able to buy a lot more than a coffee. Crypto continues to grow in interest, usability, and ubiquity, leaving its geek-only niche, as society is already tech-savvy enough to use and fully embrace such a solution. What we really need at this time is a less complex but more user-friendly and simple GUI that allows people to interact with crypto more often.
Surviving means adapting. The world has changed dramatically in the last few months. We realized the benefits of everything that can be done remotely. Online conference rooms have become a phenomenon, as has the ability to work from the convenience of a couch or a new home office area arisen. It’s all rapidly improving because of the need to stay at home — now not the privilege of a few.
An example is the Guardian Circle based on cryptocurrencies’ emergency application, which has seen a massive spike in downloads due to the pandemic, resulting in a monthly rise of 2582 percent. The three-year-old app, which has failed to gain interest in the peacetime of the pre-virus world.
Microsoft’s newest data shows that the growth of remote work has led to an upward spike of 775 percent in the use of company cloud services in regions that have adopted social-distance laws. For example, the Zoom application is currently in higher demand than ever before, with JPMorgan analyst Sterling Auty noting data from third parties indicating that its daily use is more than 300 percent higher than before the pandemic forced workers entered their homes like offices.
However, the changes taking place or evolving today in our current reality will greatly impact the post-virus era, transforming the working and communication climate, as Zoom CEO Erik Yuan points out. The need for physical workstations and the idea that work efficiency depends on physical presence is already becoming a relic of the past.