Mario Draghi, President of the European Central Bank (ECB), stated that there are “no plans” to announce its own cryptocurrency.
As a response to a member of the European Parliament (MEP),Jonás Fernández’s interrogate, Draghi said: “substantial development” is still required for the technology behind digital currencies before the Central Bank would use them.
“The ECB and the Eurosystem currently have no plans to issue a central bank digital currency,” he explained:
“Nonetheless, we are carefully analysing the potential consequences of issuing such a currency as a complement to cash.”
Uttering the reason, why there are “no plans” in hand at the ECB, Draghi has attracted the attention to those same issues.
“…The technologies which could potentially be used to issue a central bank digital currency […] have not yet been thoroughly tested and require substantial further development before they could be used in a central bank context,” Draghi stated to Fernández and continued:
“With regard to the central bank administering individual accounts for households and companies, this would imply that the central bank would enter into competition for retail deposits with the banking sector and lead to potentially substantial operational costs and risks.”
Additionally, he said there is currently no concrete need to announce an extra currency inside the eurozone, explaining the desire for cash paper money continues to grow in the EU28.
Continuing his statement, Draghi utters, the conservative attitude from the 28-member bloc has held with bank-issued digital currency, particularly compared to countries like Russia and China.
According to a report, earlier this year from the ECB and Bank for International Settlements (BIS) pointed out the side effects of a possible release of such a cryptocurrency as well as the necessity for more study beforehand on the matter.
Author: Berna Bayindir
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