• About
  • Advertise
  • Contact
Cryptopolitan
  • Home
  • News
    • All
    • Altcoin News
    • Binance News
    • Bitcoin Cash News
    • Bitcoin News
    • Blockchain News
    • Cardano News
    • ChainLink News
    • Cyber Security News
    • Dogecoin News
    • EOS News
    • Ethereum News
    • Exchange News
    • Industry News
    • Litecoin News
    • Monero News
    • Polkadot News
    • Regulation News
    • Research News
    • Ripple News
    • Scam News
    • Token Sale
    • Tron News
    Bitcoin price prediction – Huge uptrend awaits BTCUSD past $34k resistance

    Bitcoin price prediction – Huge uptrend awaits BTC/USD past $34k resistance

    Tether

    Tether USDT: What happens if the stablecoin collapses?

    Cryptos

    Cryptos banned: Russian government officials will no longer own digital currencies

    Litecoin price

    Litecoin price prediction: LTC to fall to $120.00 support level

    Bitcoin

    Bitcoin supply crisis could spark a hike in BTC price

    Ethereum price

    Ethereum Price Prediction: ETH trims gains after setting new ATH at $1,480

    Coinbase

    $27 Million XRP wired to Coinbase from “Anonymous user”

    Bitstamp Crypto custody services

    Dutch Bitstamp new requirement of proof of income for withdrawal irks users

    Gemini expands in Singapore with localized crypto offerings

    Gemini expands in Singapore with localized crypto offerings

    Trending Tags

    • Fintech
    • Bitcoin Industry
    • Stock Market
    • Digital Currency
    • Bitcoin
    • Altcoin
    • Blockchain
    • Binance
    • Security
    • Ripple
    • Litecoin
    • Ethereum
    • Dogecoin
    • Cardano
    • Tron
    • Token Sale
    • Industry
    • Exchange
    • Polkadot
    • ChainLink
  • Guides
  • Regulation
  • Price Index
    • Bitcoin Price
    • Ethereum Price
    • Ripple Price
    • Bitcoin Cash Price
    • Chainlink Price
    • Litecoin Price
    • Polkadot Price
    • Cardano Price
    • Binance Coin Price
    • Stellar Price
    • EOS Price
    • Tron Price
    • Monero Price
    • Dash Price
    • IOTA Price
    • Dogecoin Price
    • Altcoin Price
  • Research
  • Scam
  • Events
No Result
View All Result
Cryptopolitan
  • Home
  • News
    • All
    • Altcoin News
    • Binance News
    • Bitcoin Cash News
    • Bitcoin News
    • Blockchain News
    • Cardano News
    • ChainLink News
    • Cyber Security News
    • Dogecoin News
    • EOS News
    • Ethereum News
    • Exchange News
    • Industry News
    • Litecoin News
    • Monero News
    • Polkadot News
    • Regulation News
    • Research News
    • Ripple News
    • Scam News
    • Token Sale
    • Tron News
    Bitcoin price prediction – Huge uptrend awaits BTCUSD past $34k resistance

    Bitcoin price prediction – Huge uptrend awaits BTC/USD past $34k resistance

    Tether

    Tether USDT: What happens if the stablecoin collapses?

    Cryptos

    Cryptos banned: Russian government officials will no longer own digital currencies

    Litecoin price

    Litecoin price prediction: LTC to fall to $120.00 support level

    Bitcoin

    Bitcoin supply crisis could spark a hike in BTC price

    Ethereum price

    Ethereum Price Prediction: ETH trims gains after setting new ATH at $1,480

    Coinbase

    $27 Million XRP wired to Coinbase from “Anonymous user”

    Bitstamp Crypto custody services

    Dutch Bitstamp new requirement of proof of income for withdrawal irks users

    Gemini expands in Singapore with localized crypto offerings

    Gemini expands in Singapore with localized crypto offerings

    Trending Tags

    • Fintech
    • Bitcoin Industry
    • Stock Market
    • Digital Currency
    • Bitcoin
    • Altcoin
    • Blockchain
    • Binance
    • Security
    • Ripple
    • Litecoin
    • Ethereum
    • Dogecoin
    • Cardano
    • Tron
    • Token Sale
    • Industry
    • Exchange
    • Polkadot
    • ChainLink
  • Guides
  • Regulation
  • Price Index
    • Bitcoin Price
    • Ethereum Price
    • Ripple Price
    • Bitcoin Cash Price
    • Chainlink Price
    • Litecoin Price
    • Polkadot Price
    • Cardano Price
    • Binance Coin Price
    • Stellar Price
    • EOS Price
    • Tron Price
    • Monero Price
    • Dash Price
    • IOTA Price
    • Dogecoin Price
    • Altcoin Price
  • Research
  • Scam
  • Events
No Result
View All Result
Cryptopolitan
No Result
View All Result
Home News Regulation News

European digital euro YES, but fiat will play a role in the digital world

Gorica Gligorijevic by Gorica Gligorijevic
September 22, 2020
in Regulation News
3 min read
Digital euro YES, but fiat will play a role in the digital world
585
SHARES
3.2k
VIEWS
Share on FacebookShare on Twitter
  • The digital euro is seen as an important part in the future of the economic union
  • ECB’s CBDC should function alongside the fiat, and insure sovereignity and autonomy of the Eurozone’s monetary and payment systems
  • Central bank’s internal task-force has already identified advantages and problems of implementing a digital currency that will need to be addressed going forward

Speaking at the joint Franco-German Parliamentary Assembly, President of ECB Christine Lagard has delivered her views about exploratory activities of introducing the digital euro. In the evermore digital financial environment, Lagard sees digital currency as a strategic means to preserve the sovereignty of the EU’s payment system.

Due to the ongoing pandemic of Covid-19, EU regulators have identified an accelerating growth of both contactless and digital payments across the economic union and Eurozone. The main concern of the ECB’s leadership is that, in the digital economy of the future, the Eurozone payment system could become reliant on digital currencies controlled by a potentially adversarial party. In effect, to lose its autonomy.

To achieve this goal and preserve the European payment system with a sovereign currency at its core, ECB is exploring implementing the digital euro. This digital currency or CBDC would function side-by-side of the fiat euro.

RelatedPosts

FinCEN’s crypto wallet regulations frozen by President Biden

President Biden to nominate ex Ripple advisor as OCC chief

CBDC: Bank of France reveals interbank settlement testing results

Dubai to introduce crypto regulations framework soon

Digital Euro – the future of Union

Lagard identifies the current global health crisis as a cause of accelerating structural changes in the global economy. The move toward a more digital world was starting much before this crisis, but the measures for containing the pandemic implemented around the world are driving the changes.

She was issuing a call to accelerate the Digital Single Market’s development, thus delivering the economy of scale to digital companies and providing uniform solutions for the problems of cybersecurity and data protection. This way, EU would strengthen its autonomy and protect it in the digital world of tomorrow.

Currently, the ECB is exploring the costs and advantages of adopting the digital euro. These explorations are centered arond the work of their Internal Crypto-Assets Task Force (ICA-TF).

Benefits of digital euro, and risks

Emerging trends of consumer spending and digitalisation of the financial world are bringing the spotlight on the suitability of fiat money for the future world. Many central banks are already exploring the possibilities of issuing central bank digital currencies (CBDC).

Among these investigations and one of the most important ones, due to potentially wide-reaching effects, is the work of ECB. Their analysis is based on the premise of hypothetical digital euro that will compliment the fiat euro and bank deposits.

A research paper published this year by ECB’s ICA-TF is pointing out several benefits and risks of creating digital euro, for both financial stability and efficiency of the payment system.

They identify this CBDC as a potential risk-free user-friendly asset that is fulfilling the need for a highly liquid asset in the digital economy. This would be allowing ECB’s monetary policy to impact a wider range of economic actors.

But ECB’s task-force is identifying a potential pitfall of this development. Such increased liquidity could make bank runs much easier in the times of downturn, and the amount of CBDCs in circulation must be limited for the purpose of preventing this.

A critical feature of the fiat money, from a consumer perspective, is the anonymity and consequent privacy. This could be technically difficult to replicate with a digital currency, and ECB’s task-force has concerns that the digital euro would become a problem for enforcing the AML regulations.

Currently, the internal analysis of the demand for a CBDC inside the Eurozone is coming to the conclusion that it is not significant. Both fiat euro and cashless payments are very popular. But going forward into the digital world ECB will need to assure that their monetary policy is fit for it.

Tags: cbdcDigital Currency
Gorica Gligorijevic

Gorica Gligorijevic

Gorica is a Serbian journalist with more than a decade of experience in print, web, TV, radio journalism, and the publishing industry. Past several years dedicated to web journalism and cryptocurrencies trading and investing.

Related Posts

Regulation
Regulation News

FinCEN’s crypto wallet regulations frozen by President Biden

January 21, 2021
President Biden to nominate ex Ripple advisor as OCC chief
Regulation News

President Biden to nominate ex Ripple advisor as OCC chief

January 21, 2021
CBDC
Regulation News

CBDC: Bank of France reveals interbank settlement testing results

January 20, 2021

Follow Us

  • 40.6k Fans
  • 8.3k Followers

Latest News

Types of Mining 1

Types of Mining

January 27, 2021
What Makes the Bitcoin Trading Industry Worth It 2

What Makes the Bitcoin Trading Industry Worth It

January 27, 2021
Things to Know about Bitcoin 3

Things to Know about Bitcoin

January 27, 2021
Be Part of the Bitcoin Era Today! 4

Be Part of the Bitcoin Era Today!

January 27, 2021
Bitcoin price prediction – Huge uptrend awaits BTCUSD past $34k resistance

Bitcoin price prediction – Huge uptrend awaits BTC/USD past $34k resistance

January 27, 2021

Signup To The Daily Roundup

Get New Posts By Email:
Privacy Policy

Got a Story tip? Email Contact@Cryptopolitan.com

News

Guides
Bitcoin News
Blockchain News
Ethereum News
Industry News
Research News
Scam News
Regulation News
Exchange News
Bitcoin Price
Ethereum Price
Bitcoin Cash Price
Cardano Price
Dash Price

Stay Connected

Facebook
Twitter
Telegram
Youtube

Company

About
Contact
Write for us
Advertise with us
Privacy Policy
Cookie Policy
Comment Policy
Editorial Policy
Terms and Conditions
Crypto Portfolio Tracker

Exclusive Partners of

Footer 5

Got a Story tip? Email Contact@Cryptopolitan.com

cryptopolitan 1

News

Guides
Bitcoin News
Blockchain News
Ethereum News
Industry News
Research News
Scam News
Regulation News
Exchange News
Bitcoin Price
Ethereum Price
Bitcoin Cash Price
Cardano Price
Dash Price

Stay Connected

Facebook
Twitter
Telegram
Youtube

Company

About
Contact
Write for us
Advertise with us
Privacy Policy
Cookie Policy
Comment Policy
Editorial Policy
Terms and Conditions
Crypto Portfolio Tracker

Cryptopolitan brings you quality Blockchain and Cryptocurrency news, ICO reviews, crypto technical analysis, and other unique news insiders. We cover Bitcoin news, altcoins news, blockchain projects news, ICO news, regulatory developments and the confluence of news on the leading blockchain technologies.

© 2021 Cryptopolitan. All rights reserved. Terms | Privacy

No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Binance
    • Security
    • Ripple
    • Litecoin
    • Ethereum
    • Dogecoin
    • Cardano
    • Tron
    • Token Sale
    • Industry
    • Exchange
    • Polkadot
    • ChainLink
  • Guides
  • Regulation
  • Price Index
    • Bitcoin Price
    • Ethereum Price
    • Ripple Price
    • Bitcoin Cash Price
    • Chainlink Price
    • Litecoin Price
    • Polkadot Price
    • Cardano Price
    • Binance Coin Price
    • Stellar Price
    • EOS Price
    • Tron Price
    • Monero Price
    • Dash Price
    • IOTA Price
    • Dogecoin Price
    • Altcoin Price
  • Research
  • Scam
  • Events

Copyright © 2020 Cryptopolitan.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.