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COVID-19 Is Here. How Will This Pandemic Affect the Global Financial System?

The start of 2020 has been one for the history books. COVID-19, or the novel Coronavirus Disease, has rapidly infiltrated almost every country. In response, the global economy has seemingly come to a halt as many countries have shut down non-essential business operations to prevent the spread of the disease.

The effects of COVID-19 expand far beyond health issues.

While COVID’s impact on our immune system is no doubt frightening, the economic implications of the necessary shutdowns will likely continue long after the disease is under control.

Governments are launching unprecedented levels of stimulus.

To counteract the economic blow of business shutdowns, governments are providing previously unseen amounts of stimulus to both citizens and businesses alike. Trillions of dollars in the form of grants, loans, tax deferrals, and other types of relief are entering the worldwide economy to keep it afloat.

Unfortunately, unemployment rates are skyrocketing, as well.

While the trillions of dollars in coronavirus relief may be helping some businesses, it hasn’t been enough to put a cap on unemployment. Millions around the world have been laid off, furloughed, or have had their hours cut due to COVID closures.

So far, stimulus packages have slowed the rate of unemployment growth in the European Union as well as the United Kingdom. Still, experts predict that the hold-off is only temporary. Consulting firm McKinsey warns that one in four European jobs risk some type of COVID-related hours cut.

How will this situation shake out for digital assets?

With such drastic changes to the global economic system, it’s only natural to assume that digital assets will feel an impact, as well. Digital assets exist to fill the gaps in and solve the problems of the traditional financial markets. In times of economic uncertainty, we’d expect adoption to increase.

Blockchain technology to combat COVID-19 pandemic

The severity of COVID-19 was so tremendous that the World Health Organization (WHO) had to declare it as a pandemic within a month of its full-scale expansion. The greatest challenge most governments are suffering from is the lack of a precise mechanism to detect the newly infected cases and predict coronavirus infection risk. So, we need a technology-empowered solution to fight during this COVID-19 crisis. The various features of blockchain technology, such as decentralization, transparency, and immutability, can help control this pandemic by early detection of outbreaks, fast-tracking drug delivery, and protecting user privacy during treatment.

Blockchain technology enables distributed, encrypted, and secure logging of digital transactions. It is expected to revolutionize computing in several areas, mainly where centralization is unnatural and privacy is essential. It can be leveraged globally to track the spread of coronavirus infection by deploying a blockchain network on citizens’ mobile devices. One of the major potentials of blockchain technology is to preserve patient information. It can simplify the fast-tracking of drug trials and record and track all fundraising activities and donations transparently.



Main applications of blockchain technology in the COVID-19 pandemic

·        Disease control

·        Traceability

·        Bolstering supply chain of medical parts during this crisis

·        Improving transparency during the treatment of infected patients

·        Tracking of healthcare instruments

·        Improving the recovery of infected patients

·        Storage and transfer of treatment-related information

·        Better healthcare protection

·        Effective healthcare management during the crisis

The critical role of blockchain technology is to help control the spread of this pandemic. This technology can help during this pandemic crisis by providing improved solutions, outbreak tracking, and user privacy protection, the performance of the medical supply chain, donation tracking, and safe day-to-day operations. Blockchain technology should be applied in such a way that network latency can be reduced with a secure environment for storing and transmission of critical information. The ultimate combination of blockchain technology with other emerging technologies, such as artificial intelligence, big data, and Cloud computing, can effectively handle deadly pandemics like coronavirus.

We hope you have found this article informative and interesting. For more information or queries contact us to know more about this technology.

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