Report: How the coronavirus outbreak has influenced the crypto sector

The coronavirus pandemic has already infected 367,000 people worldwide, which has caused governments to take extreme measures in terms of industries and people’s livelihoods, from which blockchain technology and cryptocurrencies have not been immune .

Blockchain technology and supply chains

According to a recent Nasdaq publication, the coronavirus pandemic has generated the potential of blockchain technology to be taken into account and appreciated in all sectors, including health, which can be seen as an opportunity for Blockchain-based solutions provide relief to those who need an optimized route for medical supplies, the source notes.

In the report they point out several existing problems due to the use of traditional technological tools: «The traditional tools of Excel Spreadsheets and Google Forms are currently being used to govern supplies, with uncertain legal contracts, the inability of people to verify the capacity of the factories and the breakdown of the confidence of the traditional payment mechanism for commercial financing and letters of credit ”.

In addition, Forbes reported on the current problems facing the medical supply chain: “Lack of trust is the biggest bottleneck that prevents this market from accelerating faster, and speed is essential in the coming weeks.”

With the use of blockchain technology in supply chains, trust is generated among those involved in any transaction, which can lead to offering medical solutions to the current crisis.

The report highlights that blockchain technology can be leveraged to continually update factories with medical product specifications, guarantee payments to supply producers, and track the transport of such supplies, to name a few ways.

Cryptocurrencies

As is known, blockchain technology supports cryptocurrencies, digital assets that have also been affected by the coronavirus. In recent days, it has been seen as the price of bitcoin (BTC) has fallen but has also recovered, as reported CoinDesk:

“The price of Bitcoin soared along with gold and equity futures after the United States Federal Reserve announced an upper limit quantitative easing package to support the economy amid the coronavirus crisis. Immediately after the announcement, bitcoin jumped from $ 5,860 to $ 6,628 in an hour.

In that sense, investors may see bitcoin (BTC) as a free source of centralized measures against the coronavirus outbreak.

The same source noted: “Essentially, the Fed is now ready to expand its bond purchases as needed. The central bank’s balance sheet hit a record $ 4.7 trillion last week… Bitcoin’s highest move along with gold is likely to revise the safe haven narrative, but it will be interesting to see if the positive correlation persists. ”

Similarly, they noted that blockchain technology is proving to be worthy of attention in these uncertain times, through its potential use in traditional supply chains and as the backbone of cryptocurrencies.

Cryptographic solutions amid the outbreak

Blockchain technology has already been used in solutions related to dealing with the coronavirus outbreak. In China, the country where the COVID-19 outbreak began, health insurance companies developed a solution to process claims.

Insurance service providers relied on blockchain technology to speed up claims payments amid a coronavirus outbreak that has placed at least 27 mainland cities in closure and forced many citizens to work from home.

In addition, they launched a blockchain platform to improve the transparency and efficiency of donations for the coronavirus outbreak, at a time when some traditional charities have been criticized for poorly distributing resources to people in need.

Called Shanzong, it allows you to track every stage of donation management, from money, masks and other medical supplies delivered, correspondence with areas needed to final delivery, according to the manufacturer. The initiative comes from the blockchain startup Hyperchain and from China Xiong’an Group.

In the case of Italy, a country that already has around 63,927 confirmed cases, the Red Cross chose to launch a fundraising campaign in bitcoins (BTC) with the aim of fighting the coronavirus pandemic in the country with the support of Helperbit.

On the other hand, the Italian bank Banca Sella is allowing its customers to buy and sell Bitcoin through its Hype platform.

Reference: bitcoin.es

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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