ECB: “if the Central Bank does not launch digital currencies, risks of financial stability may arise”
The European Central Bank (ECB) has released a large-scale report in which analysts assess the international role of the euro, as well as discuss the prospects for issuing digital currencies.
The authors of the report believe that the issuance of their own digital currencies by central banks is extremely important for maintaining the position of regulators. If such assets are not launched, this could threaten the role of central banks in the country’s economy – tech giants will launch their digital currencies and control them.
“Attention should be paid to the risks to the stability of the financial system, which may arise if the country’s central bank does not offer digital currency. In addition, the release of a government cryptocurrency will help support the autonomy of a sovereign payment system and the international use of such a currency in the digital age, ”write economists Massimo Ferrari and Arnaud Mehl.
To avoid this, interoperability between different digital currencies must be ensured. This will create a harmonious system with standardized regulatory requirements as well as encryption.
You can also go the other way – to create bridges between digital currencies of different countries. This will allow various government cryptocurrencies to interact through a common settlement system or a common technology interface. Or integrate the systems of state cryptocurrencies into a single payment system. The authors believe that the best solution is to ensure compatibility – this will require significantly less effort on the part of central banks.
Recall that now the ECB leadership is quite positive about the possibility of launching the digital euro. As stated earlier by the President of the ECB Christine Lagarde (Christine Lagarde), such an asset can be launched within four years.