There’s a strong call within the European Central Bank to start using distributed ledger technology and launch a digital euro. In the past week both First Deputy Governor Denis Beau of the Banque de France and ECB execute board member Benoît Cœuré have proposed ideas for a digital currency. European countries need to move fast to keep up with the fast developments from the cryptocurrency industry.
According to Beau the European Central Bank should be ‘open to experimenting’ with blockchain and distributed ledger technology (DLT). According to the French financial executive these technologies could be useful as a way of settling euro-denominated transactions. Existing solutions are ‘costly for end users, slow and unsafe across the world, especially in emerging countries’.
A couple of days after the remarks from Denis Beau, it was executive board member Benoît Cœuré who once again put focus on blockchain technology. He’s pushing for a digital European currency that could be used, even when cash is no longer used. Cœuré wants the ECB and European central banks to adapt and embrace the future of digital money.
Digital euro should not kill other crypto
Even though Europe wants to introduce its own European digital currency, this doesn’t mean other cryptocurrencies can’t exist. Any solution that offers speedy, easy and regulated payment solutions should be stimulated.
“But potential central bank initiatives should not discourage or crowd out private market-led solutions for fast and efficient retail payments in the euro area,”Benoît Cœuré – ECB and National Bank of Belgium, conference (November 26th 2019)
However, earlier this month the European Central Bank initiated the idea of a digital euro, alongside a strict framework that would ban high-risk cryptocurrency projects. One of the currency that’s already on the black list of many politicians is Libra.
Ever since Facebook announced libra, the digital currency has been fighting negativity. Politicians and bankers see libra as a threat to their sovereignty. Even though some companies stepped away from the association, twenty-one organizations and companies signed up and established the Libra Association in October.
Benoit Coeuré said in September that Libra has been a wake-up call for central banks all around the world. Facebook can reach over 2 billion people worldwide. As a result the Libra Association could become ‘the first to have a truly global footprint’ with its digital currency.
Also published on Medium.