The outbreak of the Coronavirus pandemic has affected the economic growth of many countries around the world. Most financial institutions are forced to proffer different initiatives to mitigate the harsh effect of the virus on the global financial market.
Central banks continue to print more banknotes to stimulate the economy in the fight against the outbreak. However, many reports have revealed that banknotes are potentially not safe during this time as they could help transmit the virus from one person to another. There is also the fear that excess money will lead to inflation as we have seen in the past.
With all of this happening at once, Revolut, a cryptocurrency-friendly digital banking startup, announced via an email last week that it will offer crypto services including Bitcoin (BTC) and Ether (ETH) to its 7 million users. This is part of the company’s effort to help cushion the negative effect of the COVID-19 pandemic on the global financial market.
Crypto to Ease Global Financial Crisis
Since the start of the Coronavirus outbreak, many nations have printed lots of fiat currencies to pay citizens, purchase medical equipment, and conduct research that could produce the right vaccine to combat the virus as soon as possible.
The implication of these actions could lead to global inflation, which would possibly devalue consumers’ savings and investments in financial institutions.
Before this time, Revolut considers cryptocurrencies as the perfect alternative to fiat currencies while adding that cryptos could provide a solution to the global financial crisis and protect the populace from any attempt to devalue national currencies.
Revolut had already provided cryptocurrency support for its premium users since 2017. The British fintech last week reiterated its stance on the possibility of cryptocurrencies providing ease to the global financial crisis as it promises to extend the crypto service to its standard customers later this year.
According to the World Health Organization (WHO), the virus could live on any surface for several hours and can be contracted through several means, including the exchange of banknotes.
Revolut’s initiative will go a long way to curb the spread of the pandemic and also create new opportunities for the cryptocurrency industry, like promoting the mainstream adoption of cryptocurrencies.
Meanwhile, Revolut recently extended its partnership with payment processing giant MasterCard to launch its card in the U.S. and other locations where MasterCard’s debit cards are accepted.