As the pandemic entered different countries and spread at an alarming rate throughout the world, retailers were encouraged to make use of masks and follow the SOPs. A terror surrounded around the culture of using cash when it was claimed that paper money was a source of coronavirus spread. No scientific evidence proved this assumption but an inevitable fear was generated among populations. The use of cash was associated the with a bit of risk.
Banks in countries like China and Korea began the practice of disinfecting notes in banks. When coronavirus was at its peak, every measure was taken to reduce the spread but disinfection of banknotes was refused by some Central banks, claiming that it did not pose a significant threat compared to other objects like PIN pads and ATM machines.
The central bank in Canada advised retailers to take cash if offered because refusing it may affect and slow down the source of income for those dependent on cash. Despite constant efforts to improve awareness of the population and reduce misconceptions and fear of cash, its use was reduced. In this manner, the trend of digital payments through apps and other platforms accelerated.
In recent years, mobile phone and desktop applications like Apple Pay, Google Pay and Venmo have become increasingly popular, however they do not replace the physical currency. Cryptocurrency, on the other hand, may have that power and that is why buying and selling of bitcoin in Pakistan and other countries have risen as our relationship with cash takes a different turn.
Becoming Cashless in an Increasing Crises
A structural change was underway when the Bank for International Settlements released a bulletin hinting an increased shift towards payments through digital platforms. This bank is an advisory for central banks around the world and so the statement was considerable for various banks to consider a switch towards digital currency.
A noticeable increase in robberies and heists in banks, shops and even public transport like buses was noted in 2009 in Sweden. In an effort to protect their workers, they reduced cash circulation. Since then, Sweden have significantly reduced the use of cash and about twenty percent of retailers no longer accept cash. As the situation progressed, a national digital currency was suggested to be brought forth. A blockchain technology, similar to cryptocurrency will determine the technical aspects of this currency. This currency will be centrally managed by a bank, contrary to cryptocurrency which allows buying bitcoin in Pakistan and other regions with no centralization. Bitcoin being the most common cryptocurrency in the world is widely exchanged to buy and sell without any control of banks over it.
Digital Currency Trials
Once coronavirus spread throughout different regions of Pakistan and the rest of the world, various countries started doing trials to generate digital currencies to avoid cash circulation. Most of these trials are done for digital currency that do not resemble cryptocurrency in several manners. Bitcoin is a well-known cryptocurrency which is exchanged through a decentralized network and is secured by cryptography, ensuring complete security for the transaction process. A bitcoin exchanger in Pakistan or other regions of the world may provide digital currency exchange services but they are different from the ones that are generated by central banks in different countries.
In most cases, asymmetric cryptography is used in digital currencies introduced by banking services. Use of public and private keys and smart contracts in asymmetric cryptography allows anonymity that can be controlled. Additionally, counterfeits are prevented to ensure a clean business mechanism.
Banks of different countries in the world are re-evaluating the nature of cash and trying to give a new turn to the conventional method of central banking. Deployment of central bank currency systems in future might embark us on a program of a social significance change that is major.
How is Cryptocurrency Different?
Theabove mentioned bank-controlled digital currency will not provide similar anonymity in cash transactions as that of cryptocurrency. As the population of different countries show an increased interest in cryptocurrencies and blockchains after the pandemic, the central banks work to develop their own digital currencies. However, privacy implications attached to digital currencies that are associated with central banks is something to rethink before making an investment.
The safer platforms would still be cryptocurrencies like bitcoin, etehreum and usdt, the top most exchanged cryptocurrencies in the world. As the culture progresses, a hope for the legalization of cryptocurrency grows in Pakistan as well. If you reside in Pakistan and are wondering how to sell and buy bitcoin in Pakistan, PKR2Dollar provides a trustworthy platform. We are a well-reputed and distinguished cryptocurrency exchanger in Pakistan.