Is the euro out of fashion? – The question of a digital euro seems to haunt the minds of all European central bankers (for good or for bad). After the Spanish central bank , it is that of Germany which is very concerned about the issuance of a central bank digital currency (MNBC) in the euro zone.
Everything studied in detail before acting
At the China-Europe Financial Summit, which took place online on October 20, Burkhard Balz , board member of the German Central Bank , made several statements relating to digital currencies .
Unlike many of these counterparts, the German banker seems worried and in no rush to see the issuance of a future digital euro .
“The introduction of an MNBC is a political decision rather than a technical decision. Therefore, a full conceptual analysis and assessment of this Bitcoin Revolution against other options is needed (…) especially with regard to its impact on society as a whole. „
Burkhard Balz is very concerned about the risks this digital currency would pose to financial stability and the health of the banking system .
International cooperation and stablecoins
The banker also insists on the need for „close cooperation“ between central banks to set up MNBCs under the best possible conditions, with the maximum of security and regulatory framework .
“I believe it is in the interests of the global central banking community that new payment devices, such as stablecoins with potentially global reach, are only offered if they are properly regulated and supervised. “
The joint work on a CDBM , set up by the Bank of Internatioaux Regulations (BIS) and 7 central banks , it seems a perfect setting.