Insights from a study conducted by EU-based blockchain firm Guardtime reportedly revealed that the ongoing health crisis has sped up the rollout of CBDCs by half a decade. 

Specifically, the blockchain entity reportedly disclosed that the development of numerous tech establishments, enhanced utilization of networking and telecommunications platforms, and the overall global digitalization could result in the first CBDC from a top economy being released in under three years. 

The company is currently collaborating with numerous central banks throughout the globe to deep-dive into designing CBDCs. 

“There is an increasing sense of a ‘race to the moon’ regarding central banks launching their own digital currencies because this could radically enhance their country and currency’s positions on the global economic stage,” Guardtime’s head of strategy Luukas Ilves reportedly remarked regarding the development. 

Per Ilves, the global pandemic has reportedly not only sped up the digitization process of the world but also created a profound impact on the way money is used. 

With social distancing guidelines being employed in different nations, and citizens are suggested to stay domestic, the corresponding incline regarding online transactions has put CBDCs in a more appropriate position as a means of payment. 

“The development of CBDCs has been accelerated by up to five years. There is also no doubt in our mind that a major central bank will soon launch a digital currency and we expect this to happen within the next three years.”

Among the leading economies globally – the US, China, and Japan-China is arguably taking the leading position for CBDCs, having initiated testings for its digital yuan in April last year.