European Central Bank (ECB) Board Member Fabio Panetta commented on the growing need, benefits and security of a central bank digital currency (CBDC).

European Central Bank (ECB) board member Fabio Panetta said the European regulator fully supports digital euro research as financial consumers increasingly turn to digital currencies and there is a possibility that traditional cash will one day completely go out of circulation.

Panetta explained that in considering this scenario for the ECB, it is important that people continue to use a currency that is not backed and issued by any third party, but by a public central bank. At the same time, the ECB does not intend to compete with the national banks of the Eurozone.

“The ECB will issue a digital euro, but will not distribute it and will not have access to the personal data of CBDC holders. Citizens will not have accounts with the ECB and it makes no sense for us to be in this business. We are not looking to get a large market share, but we want to be present, but not dominate anywhere, ”said Panetta.

With regard to the financial intermediaries that will be responsible for the spread of the digital euro, Fabio Panetta noted the need to find a balance between ensuring data confidentiality and combating money laundering and terrorist financing.

In early May, the European Central Bank, together with the London-based analytical company Kantar Group, conducted a survey among potential users of the digital euro on expectations from the future functionality of the CBDC.