ECB Analysts Point to Benefits of Launching Digital Euro
A group of experts from the European Central Bank published a report in which they noted the need for a qualitative modernization of the payment infrastructure.
One of its authors and a member of the Executive Board of the ECB Fabio Panetta noted that they are considering the option of modernizing the financial system by launching a digital version of the euro. In addition, researchers believe that it is necessary to gradually introduce blockchain technologies into the work of the European banking sector.
Note that the central banks of France and the Netherlands previously announced their intention to test the digital currency (CBDC), pegged to the euro.
Panetta emphasized that the modern financial system of the EU is largely based on banks. Retail payments are processed by operators such as Visa, MasterCard and PayPal.
The ECB wants to reduce transaction costs for cross-border transfers. This can be done by creating an ecosystem based on digital currency. In the context of the coronavirus pandemic, the Central Bank was seriously thinking about creating a single digital asset, Panetta noted.
However, he added that the release of CBDC in the eurozone does not mean crowding out other instruments. The emergence of a regional digital currency should not put an end to the work of private payment systems.
Author: Marko Vidrih
Featured image credit: Pixabay