The group of banks came together to discuss a digital Euro to in retaliation to Facebook’s Libra it seems.
The paper is named in the closest translation possible, “Beyond Libra: Why Business Needs a Digital Euro,” this says it all really.
One of the main points of the paper is that any currency issued outside of the sovereign nation-states could lead to corruption.
With every form of digital money, customers should be identified using a standard that is just as strict as that which banks and other obligated entities are required to apply under currently legal framework.
The German private banks rate programmable digital money as an innovation with great potential that can be a key component in the next stage of the evolution of digitalization
They go on to say one answer is a digital Euro. The Association of German Banks (Bankenverband) also stated that it is essential that such a system is in place in order to rid money laundering and terrorist financing. It’s clear that the German banks will not be looking to back Libra. They also do not want the likes of China and Russia to press ahead and be left behind. The best solution in their eyes seems to be a digital Euro. It seems they agree with the ECB as the previous president stated:
stablecoins and crypto-assets have had limited implications in these areas and are not designed in ways that make them suitable substitutes for money said Mario Draghi
Share
