The ECB is exploring the potential of a publicly available state cryptocurrency

The European Central Bank (ECB) is exploring the possibility of a state-owned cryptocurrency that couldenjoyed by retail consumers.

This was announced by the deputy chairmanECB Executive Council Yves Mersch at the Consensus 2020 conference, talking about the parameters of state stablecoins for individual and corporate use. Mersh said that 76% of transactions in the EU are made with cash. Despite this economic background, the ECB continues to explore the potential of state stablecoins. Nevertheless, the situation has not yet moved beyond the scope of analysis.

“Lack of a specific application scenarioCentral Bank stablecoins will not stop our research. It is necessary to prepare in advance to develop regulatory rules before issuing a digital currency. To do this, you need to seriously study its structure, and how such a coin can function in the European financial system,” — said Yves Mersch.

The ECB official added that most of the moneyissued by central banks are already digital, but are not called stablecoins. Having access to the balance sheet of a central bank means gaining access to its funds. The introduction of state cryptocurrency at the corporate level will provide such access to a limited group of financial institutions, and this can be called "ordinary business." According to Mersh, state cryptocurrencies that will become publicly available will radically change the financial system. For this reason, the ECB pays special attention to the “retail” digital currency.

Mersch suggested that such a currency shouldbased on digital tokens that provide anonymity and circulate decentralized, without a central governing body. If the state cryptocurrency cannot guarantee complete confidentiality, this can cause political, social and legal disputes, therefore, before issuing state cryptocurrencies, the legislative framework needs to be seriously worked out.

Let us remind you that the target group for jointThe study of state digital currencies was created about six months ago. In addition to the ECB, it includes the central banks of Canada, Great Britain, Japan, Sweden and Switzerland, as well as the Bank for International Settlements (BIS). Last month, Deutsche Bank analyst Marion Laboure said these central banks could issue the first "general purpose digital currency" within three years.

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