COVID-19 has caused the need for economic stimulus in the form of direct payments to individuals and the slashing of interest rates Contour, the globally. This has given rise to concerns about the speed at which governments can reactand raised the likelihood of negative blockchain trade interest rates. finance platform • Global interest regarding transmission of COVID-19 on physical banknotes has caused a number of central banks to take action.17 co-developed by • Central Bank Digital Currencies (CBDCs), which recently have been explored major banks, will by many major governments, address these concerns: • CBDCs can apply negative and variable interest rates and offer a ensure trades go broader toolkit for monetary policy, which in stressful economic scenarios make them appealing to central banks. ahead even in a • Industry leaders recognised the potential for CBDCs to distribute funds, and US Democrats included a proposal for a CBDC as part of 16 the COVID-19 stimulus bill, including the ability to more easily crisis distribute universal credit.18 10 Ways COVID-19 is impacting payments 24