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How coronavirus on your cash is payment game changer

Digital payments could go mainstream, after the coronavirus ends, according to a new report by Deutsche Bank. Yahoo Finance’s Sibile Marcellus joins Seana Smith discuss.

Video Transcript

SEANA SMITH-- Deutche Bank is out with a note. Looking into how the outbreak is altering people's habits. Sibile Marcellus joins us now with more on this. And Sybil, you're specifically looking into what they said about cash and how people plan to use it going forward. How exactly, I guess, do they see that playing out?

SIBILE MARCELLUS: That's right, Seana. So as we know, there are more than 4.-- 4.3 million coronavirus cases worldwide and the death toll has surpassed 295,000. So that means that transmission through cash continues to be a top priority for governments and central banks around the world.

Now new Deutsche Bank research says that the virus could be a game changer in that it could make digital payments go into the mainstream. Now, the way central banks around the world have in dealing with this-- so People's Bank of China was the first to quarantine cash, disinfect bank notes, and destroy currency they believed had the coronavirus pandemic.

South Korea, Hungary, and Kuwait also followed suit. Here in the US, the Federal Reserve has quarantine dollars shipped from Asia for seven to 10 days before sending them to financial institutions here in this country. Now the reason why this could be a game changer, the fear of the virus through transmission with cash, is because both in Europe and in the US, Western Europe, we're seeing that they both have aging populations that are in the habit of using cash.

But those are also the populations that are the most vulnerable to the coronavirus pandemic, hence a shift to digital payments. Here in the US, we've seen 65% of US consumer say that they're using a new payment method for the very first time.

SEANA SMITH-- Yeah, so something we will see an even bigger jump into digital payments here in the near future. Sibile, thanks so much.

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