The ongoing Hungary cash quarantine has once again exposed the flaws in the global fiat money system. As the World Health Organization (WHO) classified Coronavirus in the ‘Pandemic’ category, countries are looking for new measures to contain its spread. Hungary cash quarantine is similar to what China did in the immediate aftermath of the virus.
The deadly virus has spread its wings to many countries across the globe, and new mediums of propagation are also being discovered. Cash is a universal exchange medium adding to the woes of the general public. The global economy is already in the doldrums, and the sudden disappearance of liquid cash from the public realm can deal a devastating blow to the societies.
Other countries may emulate Hungary cash quarantine
The Hungarian National Bank has announced that large bundles of cash will be stored in sealed containers as a precautionary measure. The virus survives for two weeks in the open, and thus the cash will be sealed for two weeks. A state of emergency has also been declared in the country, which includes a ban on public gatherings and extensive travel restrictions.
China was first to note the spread of Coronavirus via cash transactions. They immediately began a quarantine process by setting the cash aside for 14 days. South Korea followed suit, and banknotes were sanitized.
Cryptocurrencies offer relief to the current virus pandemic
Hard cash is the De Facto medium of exchange. This makes it the perfect propagator for deadly viruses as well. Cryptocurrencies, however, are totally virtual, which means no hands-on transfer. Digital asset class, especially virtual currencies, delivers the perfect relief from extensive, complicated operations such as Hungary cash quarantine.
Crypto transactions are instantaneous, efficient, and require just a QR code. In such health epidemics, cryptocurrencies serve as a great alternative to cash. Since there’s no hand contact, there’s no need to sanitize virtual currencies. The cash disruption can further aggravate the already precarious economic situation and cause further losses.
Industrial activity has slowed down considerably in many countries. If more countries follow the Hungary cash quarantine example, it can wreak havoc on the world economy.