The financial services industry is bracing for a historic disruption, this time at the hands of the Federal Reserve. Banks, credit card companies and digital payment processors are nervously watching the push to create an electronic alternative to the paper bills Americans carry in their wallets. As soon as July, officials at the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology, which have been developing prototypes, plan to unveil their research. Some call it the digital dollar. Others call it Fedcoin. Wall Street calls it trouble. —David E. Rovella

Bloomberg is tracking the progress of coronavirus vaccines while mapping the pandemic globally and across America. 

Here are today’s top stories  

Chancellor Angela Merkel agreed to extend Germany’s coronavirus lockdown until April 18 after Covid-19 contagion rates nearly doubled in a month, highlighting Europe’s struggle to contain a new wave of infection. In the U.S., health officials have been issuing desperate pleas that Americans redouble their use of masks and social distancing after infection rates plateaued at high levels. Now, new cases are beginning to rise again. Here’s the latest on the pandemic.

Less than a week after Biden administration officials hosted a tense meeting in Alaska with their Beijing counterparts, the U.S. followed up with some sanctions. America is joining with the U.K. and Canada (China just conducted secret espionage trials of two Canadian citizens) in imposing penalties for what they call “serious and systematic violations of human rights” of Muslim ethnic minorities held in Xinjiang internment camps. Beijing meanwhile is making friends with North Korea and Russia.

The rare joint commitment by India and Pakistan last month to respect a 2003 cease-fire agreement is part of what may eventually be a broader pact brokered by the United Arab Emirates, one that might forge a lasting peace between the two nuclear-armed neighbors.

Indian Border Security Force personnel and Pakistani Rangers take part in the Beating Retreat ceremony during the Republic Day celebrations at the India-Pakistan Wagah border post in 2019.

Photographer: Narinder NannuAFP

Thousands of Microsoft Exchange servers are still compromised by hackers even after applying fixes, a top U.S. cybersecurity official said Monday, citing data from cybersecurity companies.

The Biden administration is considering as much as $3 trillion worth of measures to include in a long-term economic program. At the top of the agenda is the climate crisis and crumbling American infrastructure. And it looks like the rich, who got much, much richer during the height of the pandemic, will have to pay for it.

And pay they can. More than 20% of the wealthiest Americans’ income isn’t even reported to the Internal Revenue Service. The IRS easily misses income hidden in sophisticated ways, including in private businesses and offshore structures. Collecting all unpaid income tax from the top 1% would boost revenue to the U.S. Treasury by quite a lot.

President Recep Tayyip Erdogan’s removal of Naci Agbal after just four months as central bank governor marks an end to a period of policy orthodoxy that had briefly restored the lira’s fortunes following a 20% dive last year. On Monday, Turkey’s stocks, bonds and the lira plummeted.

What you’ll need to know tomorrow 

What you’ll want to read in Bloomberg Pursuits

G-Shock Broke Its Own Rules for Hit Watch

Iconic designs abound in the world of luxury watches, and the octagonal motif–as made famous by the Audemars Piguet Royal Oak and your neighborhood stop sign–has driven a number of recent hits. The smash G-Shock GA-2100, which costs about a hundred bucks, has earned the nickname “CasiOak” after its octagonal shape. Was the resemblance intentional?  Let’s find out.

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