Skip to main content

Digital euro "a necessity" - ECB director comments on the state of research

 


Yesterday, as part of the IESE Business School Banking Initiative Conference on Technology and Finance, Fabio Panetta, Director of the European Central Bank (ECB), gave an overview of the ECB's current state of research regarding a public central bank digital currency (CBDC).


To that end, Panetta stated that the issuance of central bank digital currencies "is likely to become a necessity" in the future, but warned that they "must not become a source of financial disruption that impedes the flow of money in the European Economic Area".


According to Pancetta, an important measure to be able to maintain financial stability after the introduction of a digital euro is the involvement of private banks. This would allow them to continue offering customer-facing banking services, while at the same time the central bank would benefit from banks continuing to contribute their expertise in customer service and anti-money laundering (AML). Possibly a crucial synergy, as it is often feared that the introduction of CBDCs will make private banks redundant as middlemen.


A research paper by the US Federal Reserve from January forecasts a similar role for the banking sector in the future. It states that banks could continue to play an important role in ensuring customer privacy. For its part, the ECB has repeatedly emphasized the importance of data protection .


Panetta went on to explain in his speech that “when demand for cash decreases, issuing CBDCs could ensure central banks' monetary sovereignty, thus maintaining confidence in the money and payments system”. At the same time, this could stimulate competition between banks and improve the negotiating position for customers by "reducing" the market power of the banking system.


The research results regarding the possible interactions between central bank digital currencies and monetary policy show how important a well thought-out conception of a digital euro is. "We have to resolve the 'CBDC trilemma', according to which the three goals of the central bank, payment efficiency, financial stability and price stability, are in conflict," said the ECB Director in this context.


The conception of a digital currency is made even more difficult for central banks by the fact that cryptocurrencies in particular are rapidly gaining market share. Their "rise in tandem with fiat money over the past decade has been sudden and had a massive impact, almost comparable to the Cambrian species explosion of 20-25 million years ago." Nonetheless, Panetta concludes by warning that the lack of an adequate CBDC to balance other digital currencies “poses risks to currency sovereignty, financial stability and other central bank functions.”

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin...
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne...
Post a Comment
Read more

Bored Ape Yacht Club NFTs stolen through phishing on Instagram

  Bored Ape Yacht Club ( BAYC ) developers announced on Monday that hackers have hijacked the official Instagram page of the popular NFT collection and posted links to a fake airdrop. Crypto enthusiasts who connected their MetaMask wallet to the rogue website subsequently had their Ape NFTs stolen. Apparently, the attack was planned to coincide with the one-year anniversary of the BAYC collection. This increased the "perceived credibility" of the phishing link. About 100 NFTs are said to have been stolen in the phishing attack . According to CoinGecko data , the minimum price for a BAYC NFT is 139 Ether ( ETH ) or $400,726. So if reports are correct, over $40 million worth of NFTs were stolen in the attack. These numbers are only the lowest estimate, however, as they are based on the lowest price.  At the time of writing, it was still unclear how the hackers gained access to BAYC's official Instagram account. Social media users have pointed out the importance of two-fact...
Post a Comment
Read more