May 19, 2024

ECB: central bank digital currencies to respond to changing pay behavior

The issuance by central banks of their own digital currency could be an important decision for regulators in the context ofrefusal of EU residents to use cash. This opinion was expressed by member of the board of the European Central Bank Benoit Quéré.

According to him, new technologies «change the behavior of people in the field of payments in the euro area». As an example of such changes, Kéré cited a decrease in demand for cash.

«Central bank digital currency couldensure that citizens will still use its money even if cash eventually falls out of favor. Such a digital currency could take various forms, the benefits and costs of which the ECB and other central banks are currently studying», —he stated.

He also called on EU countries to consolidate efforts to maintain and develop the single market and create a pan-European market solution.

At the same time, Kere emphasized that regulators should not impede the development of private market solutions for quick and efficient payments in the eurozone.

Recall, last year, Kere called bitcoin "the devilish spawn of the financial crisis."

From January 15, 2020, he will head the innovation hub at the Bank for International Settlements.