June 18, 2024

German Banking Association supports digital euro

German Banking Association supports digital euro

The Association of German Banks, which represents more than 200 private banks, has published a document outlining the clear economic benefits of using a digital euro.

It says that for the monetary system shouldonly states must respond, and any currencies that banks and businesses work with must fit into it, or otherwise chaos will ensue. Therefore, the association argues in favor of the digital euro as part of a pan-European payment system with common identification standards and legal norms.

According tobanks, programmable digital money hassignificant potential, and if properly organized can become an important element in the further development of the EU in the field of digitalization. At the same time, they are confident that the new form of money will be in demand and will not jeopardize the existing currency systems of the countries.

At the same time, the Association of German Banks believesthat Facebook's Libra stablecoin will become a competitor to the world's key currencies, as well as a cause of economic and political conflicts. Therefore, he calls on the authorities of the countries to prevent such competition.

In addition to banks, the idea of ​​digitizing the euro for the development of the region’s financial system and protection from Libra was previously also supported by the Ministers of Finance of Germany and France.