UnionBank president forecasts the "end" of traditional cash




UnionBank chairman forecasted the end of physical cash


Edwin Bautista - President and CEO of UnionBank Philippines, has predicted that the coronavirus outbreak will force banks to switch to digital currencies and abandon physical cash.


According to Euromoney reporting On April 3, Bautista emphasized that the pandemic has stimulated an increasing demand for online banking services, thereby spurring banks to change their digitalization strategy. "This pandemic will definitely make banks realize the need for a digital transformation now," Bautista said.


Even the chief executive predicts cash has begun to come to an end, especially if central banks fail to provide awareness and coins to banks and automated teller machines. .



“An important perception here is that the longer the disruption lasts, the more difficult the traditional cash supply chain becomes. Therefore, I hope banks will be more open to testing, developing and deploying digital currencies, QR codes and maybe even cryptocurrencies and digital tokens. ”



Advertisement


"The crisis will quickly track change in the digital direction," which will "represent a tremendous opportunity for the bank," according to Bautista.


UnionBank's tests with blockchain


UnionBank truly demonstrated an active approach to blockchain-related developments. In July last year, the bank launched a stablecoin - pegged to the Philippine peso, focused on payments. The coin - called PHX, is designed to act as a "stable store of value, a medium of exchange and a programmable token with self-executing logic."


In the same month, UnionBank successfully piloted a blockchain-based cross-border transaction from the Philippines to Singapore. The final project aims to provide millions of Filipino people without bank accounts with access to financial services by connecting rural banks to the national financial network.


Meanwhile, other banks around the world are also continuing to promote the development of their own digital currencies. Just last month, the French Bank officially launched a pilot program to test the integration of a central bank digital currency (CBDC) for interbank transactions, meanwhile, The Bahamas announced plans to adopt CBDC by the end of 2020.


Maybe you are interested:



Join our channel to stay up to date on the most useful news and knowledge at:



According to CoinTelegraph
Translated by ToiYeuBitcoin