Amid great global turbulence over the coronavirus epidemic, the Coinbase cryptocurrency exchange shared a contingency plan and China is postponing research on digital currency.
The renowned Coinbase exchange announced a contingency plan for several possible outcomes of the coronavirus or COVID-19, the epidemic that is currently rapidly spreading globally.
The firm, with offices in Ireland, the United States, Japan and the United Kingdom, said it is planning “a really negative outcome” despite having an optimistic outlook.
Coinbase and its plan against the coronavirus
A document shared by CEO Brian Armstrong yesterday revealed:
“Our expectation is that the mortality rate (once cases of low severity are included in the overall count) will decrease significantly and that we will see a limited transmission in the West, where there will be less multigenerational situations of high density.”
According to the Cointelegraph news media, each phase of the plan will be triggered by an increase in the number of people infected with the coronavirus or by local governments that respond with quarantines in the vicinity of Coinbase offices.
The four phases of the plan
Coinbase is planning three phases of the disease apart from the current one. At this point, all the company’s offices are at level zero.
“We have a permanent crisis management team that continuously reviews new information as it arrives,” the document says. “We have established a four-level ladder (from level 0 to level 3) to respond to changes affecting Coinbase offices.”
We can deduct the other three levels of the plan:
According to the source, obviously, Coinbase offices in Japan are level 1.
In the event that there are 100 people infected “from person to person” in the radius of travel of a certain office of the company, it will ask certain employees to work from home. The company will also increase the cleaning schedules of those offices and offer masks disposal containers.
Phase two begins if “more than 1,000 events such as the previous one or any government quarantine action in the travel range of a Coinbase office”, as well as in the case that the “mortality rate remains 1% or higher (10 times seasonal flu) and the observed transmission rate remains above 1.5 ”.
At that time, Coinbase will stop serving meals in the office and prohibit visitors in the offices or “institute a visitor health evaluation program.”
If there are more than 5,000 infections, Coinbase points out, in a kind of “disclaimer,” that it will be “a wild journey” since “containment will have failed.”
In phase 3, all employees must work from home. “At this level, I would expect our ability to use third-party services such as cleaning, snacks, etc. begin to decompose due to absenteeism caused by fear … I would also expect to see regional isolation in the affected area, “Armstrong wrote.
Optimistic but cautious
“We still believe that the risk of COVID-2019 for most employees is low, with a slightly high risk for our team in Japan,” the firm said. At this point, the company restricted travel to China, Hong Kong, Japan, Italy and South Korea.
The virus, which has origins in the Chinese region of Wuhan, has dominated news coverage since its appearance last month. The latest reports focus on the growing number of infected people in Italy and Iran. While the World Health Organization (WHO) does not yet consider the infection to be a pandemic, many companies and governments are urging people to prepare for the worst case scenario.
China postpones research on digital yuan
In other news, China’s investigation into the launch of its own digital currency was delayed by the virus outbreak. According to the Global Times, an anonymous source explained that the outbreak forced several government institutions to slow down. The source said:
“The coronavirus outbreak has led to postponed resumption of work in government institutions, including the People’s Bank of China (PBC). Policy makers and research staff involved in the DCEP project are no exception, which weighs on the development process.”
Commenting on the case, the CEO of a Shenzhen-based Blockchain firm involved in the launch of the digital currency, Shentu Qingchun, said it was expected that the People’s Bank of China (PBoC), the country’s central bank, would do an ad matters