President of the European Central Bank (ECB) Christine Largade says Europe needs a borderless and regulated digital euro. Largade’s comments come at a time when countries across the globe are researching the possibility and feasibility of a CBDC.
Christine Largade wants a borderless digital euro
Christine Largade made the remark Wednesday while speaking at the Frankfurt Forum on US-European GeoEconomics in Germany. Largade highlighted the significance of a borderless feature for any apt idea of a CBDC
Largade mentioned that a borderless trait for the digital Euro will help address any concerns or difficulties that could emanate from cross-border settlements should the ECB opt for a restrictive version for the CBDC.
The 66-year-old French lawyer brought to attention the borderless feature of digital assets. She noted how the characteristic has aided cross-border settlements. Notwithstanding, Largade noted that digital assets should not “cross the line,” pointing out the necessity of proper regulation.
It [digital currency] can facilitate cross-border payments in a big way, which is why between the United States authorities, the European authorities, and others beyond that, we need to compare notes,
Largade added, speaking further.
The ECB has already revealed its intentions to launch a CBDC
Addressing emerging concerns, Largade noted that the digital euro would not serve as an ultimate surrogate for hard cash. She said this is because the majority of individuals are already accustomed to hard banknotes.
Additionally, she attempted to quell the worries of privacy arising from the introduction of a digital euro with an assurance of privacy protection should the ECB ultimately consider launching one.
The central bank has made its intentions of considering a CBDC known in the past. Last year, the ECB officially approved an investigation phase for its CBDC which could take up to 2 years.
Furthermore, Fabio Panetta, Italian economist and executive board member of the ECB noted that a digital euro could shield the Eurozone from the “threat” of other cryptocurrencies. Additionally, Panetta released a report on CBDC last month.
Per the report, some of the advantages of a CBDC include safeguarding monetary sovereignty and enhancing competition and efficiency in payments. Panetta also highlighted two challenges for the digital euro. According to him, the digital euro should not be too successful, but it should be successful enough.
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