A senior member of the board of the European Central Bank recently spoke on the European digital currency, its benefits, and underlying probabilities.
The recent legislative proposals for the digital euro have received support from an ECB official recently. Fabio Panetta, a member of the European Central Bank (ECB) board, made the speech recently. He implied the ECB stood in support of the legislative proposals of the European digital currency.
He spoke before the European Parliament’s Committee on Economic and Monetary Affairs. According to Panetta, the recent proposals were in the benefit of Europeans. He said it would also put Europe ahead in developing central bank digital currencies (CBDCs).
Panetta described how closed-loop solutions were more common in private payment companies. He said the public payment option in the form of the digital euro was thus beneficial. Broadly, he hinted the digital euro could overcome the disadvantages of the private payment system.
“The legislative proposals on the digital euro and the legal tender status of cash would ensure that, in an increasingly digital world, central bank money remains easily accessible and accepted throughout the euro area. Cash is here to stay. The proposals would enshrine this in legislation.” he said.
Panetta further stated that the Eurosystem would be unable to see the personal details of the users of the digital euro. Cash-like privacy would prevail in the digital currency, he mentioned.
The issuance of the CBDC would be an opportunity for the region, as opposed to being a risk, said Panetta.