February 4, 2023

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

The issuance by central banks of their own digital currency can be an important decision for regulators in conditions of refusal of EU residents from cash. This opinion was expressed by a member of the board of the European Central Bank Benoit Kere.

According to him, new technologies "change the behavior of people in the field of payments in the euro zone." As an example of such changes, Kere called a decrease in demand for cash.

“The digital currency of the central bank can guaranteethat citizens will continue to use his money, even if cash will eventually lose popularity. Such a digital currency can take various forms, advantages, the costs of which the ECB and other central banks are currently studying, ”- he declared.

He also called on EU countries to consolidate their efforts to maintain and develop a 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.