The use of digital payments will become a permanent habit among people. The issue of the post-coronavirus economy involves cryptocurrencies as new forms of payment.
Greater use of digital payments and greater adoption of cryptocurrencies will be some of the prevailing practices in the world, once the coronavirus pandemic ends.
In recent days, specialists Lucas Llach, Alberto García-Lluis Valencia, Victoria Giarrizzo, Gabriel Basaluzzo, and William K. Santiago spoke about the future of money after COVID-19.
They consider that many of the practices systematized in almost all countries due to the COVID-19 pandemic could become permanent. They are particularly referring to telecommuting, e-commerce, and the use of different forms of digital payments.
García-Lluis, strategic Advisor in digital transformation processes of the Spanish financial sector, considers that humanity is undergoing a disruptive change that will mark the economy in the rest of the century. For this reason, he thinks that this is the height of digital money as an instrument to build trust.
This specialist states that the mistrust towards traditional systems that the current economic crisis has caused can become a driver of new technological tools. Among them, he mentions decentralized finance (DeFi), digital central bank currencies (CBDC), stablecoins, and cryptocurrencies.
Regarding this, Lucas Llach, economist, and historian linked to financial innovation issues from the Central Bank of Argentina believes that humanity is facing a crisis of great dimensions. Consequently, he agrees that some behavior change trends that derive from this pandemic will become permanent. “Remote work and the digitization process of finance are some of them.”
It is difficult to anticipate what lies ahead, but people foresee the substantial growth of financial technologies (FinTech). García-Lluis lists some innovations, among which are blockchain and artificial intelligence.
Bitcoin and Cash on the Balance
Victoria Giarrizzo, economist and director of the NGO Movida Argentina, supports the idea of advancing finance and digital payments. However, she also thinks that the results of a recent survey on trust in money provide important data.
According to the consultation, she notes that Argentines trust the US dollar (50%), the Argentine peso (about 25%), and cryptocurrencies (13%). In this regard, Lucas Llach states that these results could be related to the fact that many people still do not know cryptocurrencies.
Giarrizzo adds that the relationship of people with banknotes and coins has changed due to fear of COVID-19 contagion. She says that she does not know “if those changes will become permanent or will disappear when the pandemic passes.”
Concerning these issues, Gabriel Basaluzzo, economist and director of the degree in Finance at the University of San Andrés (Argentina), also observes that the dynamics are leading to a radical change in everyday life and the use of new forms of digital payments.
However, he considers that it will be hard for the cash culture to fall entirely, even though people have used fiat money less in this quarantine. Likewise, he believes that many of these new practices will not continue after the pandemic, and people will resume some of their old habits.
Even so, Basaluzzo comments on the changes produced in trading and the drop in jobs due to the coronavirus. He says that many of the people who have lost their jobs due to the quarantine are establishing new ventures. Mostly, they are the ones who use new digital payment methods but not necessarily cryptocurrencies.
The economist foresees a greater degree of stability for cryptocurrencies like Bitcoin, although he considers that the most prominent use of the cryptocurrency is as a store of value, despite its volatility. Because of this, Llach mentions the need to simplify the operation of cryptocurrencies so that their use as a means of payment is easier for everyone.
By Alexander Salazar
