October 25, 2020

Germany takes the initiative to create a digital euro

Germany takes the initiative to create a digital euro

The Association of Private Banks of Germany, which includes more than 200 financial institutions, called for the release digital euro. Its creation will help the EU withstand competition from the United States and China, as well as prevent possible negative consequences from the launch of Libra, bankers say.

According to the association, the new asset should operate on the basis of a pan-European payment platform and be regulated in accordance with a single regulatory framework.

“The user of digital euro - be it a personor machine - must be identified. This requires a European or, even better, global identification standard. It should be as strict as the one that banks and legal entities follow in accordance with the current legal framework. ”, - the document says.

The association noted that while in the single zonepayments in euros (SEPA) failed to integrate smart contracts and digital processes, and therefore it is necessary to create an infrastructure to implement new digital business models.

The creation of a digital euro will ensure securitythe existing monetary system, while the release of private virtual currencies, such as Libra from Facebook, can lead to “significant economic and political conflicts,” German bankers are sure.

In addition, the digital euro will allow the EU to maintain its position in the international arena, they believe:

“Digital money may very soon becomereality. Europe must be competitive so that global financial architecture does not polarize between US or Chinese technology solutions. ”, - declared in association.

Earlier, that Germany should not lag behind other states or private companies with the issuance of digital currency, said the head of the country's Ministry of Finance Olaf Scholz.

French Finance Minister Bruno Le Mer also called for the release of the digital euro.

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