Jens Weidmann, President of the Federal Reserve Bank of Germany (Bundesbank), proposes a “progressive” rollout of the digital euro to avoid potential damage to the banking sector.
The Governor of the Federal Reserve Bank of Germany states that digital central bank coins can be used for deposits in commercial banks. “can take your place” and therefore against the functioning of the financial system and the implementation of monetary policy. “significant risks” declared it constituted.
Digital central bank coins (CBDC) are given to central banks to consumers, unlike today’s two-tier banking system. direct access can provide the opportunity.
Current Fintech and the global payments landscape – exploring new horizons Speaking at the event, Bundesbank President said, neither liquidity, credit nor market risk He stated that a digital euro, which will carry the
digital euro reduce transaction costs and make payment transactions more efficient. by Weidmann, “The CBDC should be designed in such a way that users can take full advantage of its potential benefits while keeping the risks and potential side effects at bay.” said.
“(Digital money) should be attractive enough to get users to accept it. But shouldn’t be too tempting because otherwise, it could corrupt the financial system. […] Considering the risks, I think a phased approach it might make sense to watch it – this means that it comes with certain features and more different features It is a digital euro to which it can be added.”
According to a July statement, the European Central Bank has announced that after months of discussions about the digital central bank currency. a 24 month switch to the review process took the decision.