February 9, 2023

German Private Banking Association Supports Digital Euro Issue

The Association of Private Banks of Germany, which includes more than 200 financial institutions, has published a document calling for the release of a "programmable digital euro."

The document emphasizes that a digital euro based on cryptography should work on a pan-European payment platform, which will be supported by the monetary policy of European countries.

“The user of the digital euro, be it a person orthe machine must be clearly identified. And this requires the creation of a European, and better global identification standard. When using any form of digital money, users must be identified by this standard. It should be as strict as the standards that banks follow to meet the requirements of regulators, ”the document says.

In order to be competitive, the systemshould be based on a common standard and currency. A digital currency based on these principles can quickly gain popularity, but the existing monetary system should not be jeopardized. But private cryptocurrencies, such as Libra, can easily become the cause of economic and political conflicts, the Association of German Banks believes.

Also, the authors of the document called on regulators and legislators to take a balanced approach to the regulation of digital assets.

Note that recently the Minister of Finance andGerman Vice Chancellor Olaf Scholz advocated the creation of a national digital currency, however, according to the country's parliament, cryptocurrencies will not be able to become money and a means of accumulating capital.