The Impact of Covid 19 on the Digitalisation of the World's Economy

The world was taken by storm by a pandemic seizing people's everyday lives in March 2020. We were forced to stay at home, working and learning from a mere screen. We were living out our lives for nearly two years in seemingly never-ending isolation. As the world paused, the healthcare system was challenged, businesses slowed down and everything seemed to change forever. What was yet to come was not something anticipated to happen so soon and so extensively. 

Consumers rapidly shifted towards Digital services like telemedicine, e-commerce, digital banking, and payments. Online mediums were increasingly utilised by individuals all over the world. The need for digital solutions and services resulted in the rapid transition required by many organisations and organisations to new digital tools and platforms.

Before COVID-19, there was a significant business transformation taking place in the world, as evidenced by the phenomenal success of large-scale Internet companies like Amazon Prime, Twitter, Uber, Netflix, Xbox, and others that are now a vital part of our lives and serve as examples of the new global digital economy. The development of new applications and services that were previously thought to be beyond the capabilities of computing technology was made possible by the ability to apply artificial intelligence (AI), machine learning (ML), speech recognition, location services, speed, and identity tracking in real-time.

Governments all across the globe launched a number of programmes and regulations to support digitization in a number of industries, including financial services, healthcare, and agriculture. The COVID-19 pandemic has had a huge effect on India's economy's digitalization. The pandemic's lockdowns and movement restrictions have increased the usage of digital platforms for a variety of purposes, including remote work, online learning, and digital commerce. This has sped up India's transition to a more digital economy. The Indian government has also made a number of announcements regarding plans and laws to support digitalization in a number of industries in the country. The pandemic also had a favourable effect on India's move toward digital currency. Digital payments increased as a result of the pandemic's lockdowns and travel restrictions, which discouraged people from using cash and raised the danger of infection. The Indian government had announced a number of initiatives to encourage the use of digital payments, including a decrease in transaction costs and a push for the use of RuPay, the country's own digital payment system. Additionally, the Indian government unveiled smart wallets, QR code payments, and contactless transactions. Additionally, the government encouraged UPI (Unified Payment Interface), which enables immediate money transfers through mobile phones.

The pandemic hastened the UK's transition to a more digital economy. The UK's Government and the Central Bank had also announced a number of initiatives to support digital payments, including the 2008 launch of the Faster Payments Service, which enables almost instantaneous money transfers between bank accounts, the 2018 launch of Open Banking, which permits users to share their banking information with third-party providers, and the Bank of England's project to create a Central Bank Digital Currency (CBDC). The government has also been promoting the usage of mobile payments, digital wallets, and contactless payments, which have all grown in popularity as a result of the pandemic.

The Federal Reserve of the United States had also launched a number of initiatives to support digital payments during the epidemic, such as the Faster Payments Task Force, which aims to improve the speed, security, and effectiveness of the country's payment system. The government has also encouraged the use of mobile payments, digital wallets, and contactless payments, which have all grown in popularity as a result of the pandemic. As a result, numerous private businesses made investments in fintech and electronic payments to enhance payment systems, including Venmo, PayPal, and Square.

The Japanese government and the Bank of Japan had also announced a number of initiatives to encourage the use of digital payments, including the launch of J-Coin Pay, a service that aims to lessen the country's reliance on cash and encourage the use of digital payments, and the BOJ's establishment of the FinTech Center in 2016, which has as its goal the creation of new financial services and technologies.

As a result, more people around the world are using digital services including telemedicine, e-commerce, digital banking, and payments. It's crucial to remember that the pandemic has also brought attention to the digital divide that many nations have, where certain demographics, including the elderly or those living in rural areas, have limited access to digital technologies and services. In order to operate and continue serving their consumers, many businesses and organisations have had to quickly adapt to new digital tools and platforms, which has raised the demand for digital solutions and services. The COVID-19 pandemic has, in fact, quickened the speed of digitalization in the world economy and highlighted the significance of digital technologies in facilitating economic activity and addressing social concerns.