Categories: Coronavirus

Fed Plans Release Of Clean Cash As Virus Spreads

In the midst of the coronavirus pandemic, the Federal Reserve has plans to print new money that will not have come into contact with the virus, although this may not happen immediately, according to a report by CoinDesk.

The Fed doesn't currently think that the virus will be worsened by the transmission and trading-hands of dollars, Joey Lee, spokesperson for the Federal Reserve Bank of Philadelphia, said, pointing to recent Centers for Disease Control and Prevention (CDC) findings. Instead, the spread has happened more via personal contact, not by touching the same dollars.

Because of that, the Fed will not be recommending destroying banknotes from the worst infected areas, which the Peoples Bank of China did last month, taking all money that had been created in zones of high infection.

Lee said the Fed would be looking at the CDC recommendations going forward and keeping up with the ways the virus spreads. The Fed also has a contingency stock of new currency, which it always keeps on hand.

The way the Fed is handling money has changed, however, quarantining U.S. dollars shipped from outside the country from Asia and Europe, Lee said. The dollars are held for a seven- to 10-day period before being deposited, he said.

In recent weeks, as the virus has spread rapidly across the U.S. and infected hundreds of thousands nationwide, the Fed has been taking action to help mitigate the virus's effects, with rate cuts and other initiatives intended to help the economy.

Other entities have stepped up to help, like Bank of America, which recently allowed customers to request deferments for things like mortgage and credit card payments as the economy slows to a crawl. The bank said deferments will be evaluated on a case-by-case basis. Foreclosures, evictions and other such actions will also be suspended, the bank said.

Get our hottest stories delivered to your inbox.

Sign up for the Newsletter to get updates on top stories and viral hits.



Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Recent Posts

Shopify: 2 Employees Took Consumer Data From Merchant Sites

Two Shopify employees stole data from over 100 merchants, possibly exposing data from consumers who…

4 hours ago

Data: 87 Pct Of NYC Restaurants Couldn't Pay Full Rent In August

Eighty-seven percent of New York City restaurants, bars and other such venues couldn't pay their…

4 hours ago

Today In Digital-First Banking: Paya To Buy The Payment Group; Purdue Federal Credit Union Taps Payrailz For Payment Services

In today’s top news in digital-first banking, digital payment processor Paya has come to an…

5 hours ago

SatoshiPay Launches DTransfer For Quick X-Border Payments

According to Blue Star Capital, its investee company SatoshiPay has launched a new B2B payments…

5 hours ago

Mnuchin, Powell Tell Congress US Economy Could Use More Stimulus

House Democrats are continuing to push for a second round of $1,200 individual stimulus checks,…

5 hours ago

QuickChek, Paytronix Team On Reward Program

Digital guest experience platform Paytronix helped to implement a new digital rewards program for QuickChek,…

5 hours ago