German banks call for digital euro

The Association of Private Banks in Germany presented a document in support of the creation of a European digital currencyand a uniform 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 – person orcar – must be clearly identified. This requires the creation of a European or global identification standard. When using any form of digital money, the customer must be identified using the same strict standard as that applied by banks and legal entities under current legislation.

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.

Based on materialswww.finextra.com