ECB’s Lagarde, Panetta See Digital Euro as More Efficient Payment Means Than Crypto – Finance Bitcoin News

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Trend toward digitalmoney creates certain risks, senior ECB officials warn.

The high-ranking representatives of the eurozone’s monetary authority have thrown their support behind Europe’s central bank digital currency in a piece published this week in the bank’s blog, in which they note that the “successful model for payments” that lasted many decades is now challenged.

They cannot guarantee one-to-one convertibility with central bank money. They are not an efficient means of payment, especially if their value is not backed by any asset. And, in the case of stablecoins, they are vulnerable to runs. The ECB president and board member stress that this is why the bank launched the digital euro project a year ago. Introducing a digital version of the euro would ensure that EU citizens can trust in the monetary anchor behind their digital payments. The hope is that it will also protect the autonomy of European payments and improve the efficiency of the payment system in general.

 

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