The European Central Bank proposes launch own digital currency

Posted 06 November, 2019

An EU draft document has urged the European Central Bank (ECB) to consider issuing a public digital currency in response to the Facebook-led Libra project. The document, prepared by the Finnish EU Presidency indicated that the European Union could come up with a universal regulatory framework that will target digital currencies and crypto projects considered “high-risk.”
 

“The ECB and other EU central banks could usefully explore the opportunities as well as challenges of issuing central bank digital currencies including by considering concrete steps to this effect.”

Based on the proposed plan to create the universal cryptocurrency for the EU, it’s apparent that the ECB is campaigning for its own digital currency, which it would still control. According to an ECB official, the project would allow consumers to use electronic cash, which they could deposit directly at the central bank. Consequently, there would be no intermediaries.

With no banking accounts and third-party involvement, the ECB would have the opportunity to manage the bank’s operations by conducting digital payments at low costs. If the EU issues its digital coin, this would be a U-turn from the European Central Bank’s position in 2018, when its President Mario Draghi was quoted as saying the ECB “has no plans to issue a central bank digital currency.”

Previous story

07 November, 2019 10:26

← Hong Kong issues new rules for crypto exchanges

 

Financial regulators in Hong Kong will introduce clear cut rules to govern the operations of cryptocurrency exchanges. The new rules draw on the standards of Hong Kong’s Securities and Futures Commission (SFC) expects for conventional securities brokers

Hong Kong issues new rules for crypto exchanges

Next story

06 November, 2019 13:47

Kevin Weil: ''Libra won’t spread, it takes decades'' →

Facebook's ambitious and controversial plan to build a new cryptocurrency may take decades to achieve but could have a huge impact, if it changes early setbacks.

Kevin Weil: ''Libra won’t spread, it takes decades''
Write a comment
 
Prove you’re not a bot + 10 = 15