October 20, 2020

German banks call for digital euro

German banks call for digital euro

German Private Banking Association Introduces European Digital Currency Support Paper and a single standard for their classification throughout the eurozone.

The association, which includes more than 200 privatecommercial banks, states that the development of Libra private cryptocurrency poses risks to the future of the global financial system. The statement states:

There can be no doubt thatsovereign states are responsible for the monetary system. Therefore, the currency issued by banks or other private companies should fit into the system determined by the state. Any other form of digital currency will ultimately lead to chaos and instability.

Association calls for the creation of a digital euro onpan-European payment platform. To this end, lawmakers and financial regulators must first prepare the regulatory ground for the stable operation of such a system. The appeal also says:

Digital Euro User - Man or Machine- Must be clearly identified. This requires the creation of a European or global identification standard. Using any form of digital money, the client must be identified using the same strict standard as that used by banks and legal entities in accordance with applicable law.

Recall that recently a member of the boardFrankfurt Bank Yves Mersch said Facebook cryptocurrency would damage the ability of the European Central Bank to manage the eurozone economy and could reduce the ECB’s control over the euro.

According to the materials www.finextra.com