The world economy could be experiencing a new shift from paper to digital during these days of lockdowns and Coronavirus expansion. According to the managing director of Ripple for Southeast Asia, the Middle East and North Africa, Navin Gupta, the economy is abruptly changing.
Payments Are Moving From Paper to Digital
The Coronavirus crisis has started many changes all over the world and specifically in the economic field.
According to Mr. Gupta, the global economy is moving from papers to digital. In order to sustain this, Gupta considers that Ripple’s payments data will is showing how lockdowns are placing people and companies in a situation where they have to use electronic payments rather than paper.
During the conversation, Gupta had with Finance Magnates, he explained that the Covid-19 crisis will have a deep impact on the economy. The users that are now starting to use electronic payments may not come back to paper solutions.
On the matter, Gupta commented:
“We are seeing a big shift from paper, or touch-based, or physical, to digital. So if Rachel had the choice, then she would not like to go to a physical store if she can use an app to make the transfer possible.”
In addition to it, Gupta mentioned that there has been a shift in terms of their financial and technological customers and the activities they perform. Their businesses are going up and this is something that is happening due to the Coronavirus crisis.
Users are trying to do everything as possible in order to be able to pay for their goods and services without having to depend on traditional paper payments. Ripple is now providing services to financial companies from all over the world that need to perform fast and cross border payments.
Although Gupta sees this as a positive thing, it is worth mentioning that governments are going to be using this opportunity to increase their tax collection, control individuals, and get more information about citizens, their payments, what they do and where they are.
As Gupta mentioned, this is going to bring technology to the mainstream. This is one of the reasons why the On-Demand Liquidity (ODL) service provided by Ripple could experience an increase in terms of funds moved. This service allows users and firms to send funds across borders without having to depend on slow traditional systems. By using XRP, transfers can be done in just a few seconds.