ECB Has ‘No Plans’ to Issue a Digital Euro, Says Mario Draghi
The European Central Bank (ECB) chairman said on Friday that the agency had not felt the specific need to issue a digital version of the euro, Reuters reported.
ECB President Mario Draghi, the ECB's president, said in a letter from the European Parliament that lack of technical rigidity as the basis for such efforts and high levels of actual cash use across the European Union "He said. The current table.
"The ECB and the Euro system are not currently planning to issue a central bank digital currency," he said.
Draghi said that Distributed Generation Technology (DLT), which could potentially be the foundation of the Central Bank Digital Money (CBDC), "will require significant development."
According to ECB's own research, in 2017, 78.8% of the proceeds from the EU as a whole were paid in cash. On the other hand, we paid 19.1% for the credit card and debit card using the other payment method and the remaining 2.1%.
The 2017 report said, "We seem to be challenging the perception that cash is quickly replacing cashless payment methods."
While the ECB may think that DLT is not yet mature enough to warrant real-world applications on the basis of national digital currencies, other central banks are increasingly moving to explore the possibilities.
At the end of August, the Bank of Thailand said it plans to complete the first phase of the CBDC proof-of-concept test by March next year. As part of this effort, the central bank plans to develop products with Corda, a DLT platform developed by the consortium startup R3 in partnership with eight domestic financial institutions.
China is also making rapid progress towards the launch of the CBDC.
CoinDesk reported in June that the People's Bank of China's Digital Currency Research Lab has submitted more than 40 patent applications so far in relation to planned digital currencies. It combines the core functionality of encryption and the existing monetary system.
Other countries, such as Norway, are investigating their national passwords as their cash use decreases in their own countries.
Like the ECB, other central banks have suggested that it is not the time to start the CBDC. Hong Kong excluded options in May, as did Australia and New Zealand in June.
Mario Draghi Images by Shutterstock
CoinDesk, a leader in block-chain news, is a media outlet that pursues the highest standards of journalism and adheres to strict editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and block-chain startups.
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