Posted 2 years ago | by Ben Armstrong
ECB Sends Another Confirmation of Coming Global Currency War
As China takes a step forward on its CBDC, which some think will pose a threat to 'dollar dominance,' the Eurozone and the European Central Bank (ECB) is joining the show, and scrutinizing central bank digital currency.
A new report shows that the European Central Bank (ECB) will begin working on a digital version of the euro by October 12, while conducting broad discussion on the possibility of a CBDC involving in the future of the European Union's payment infrastructure.
The ECB is Going Digital
ECB President Christine Lagarde explained that "the euro belongs to Europeans and our mission is to be its guardian." The president added that “our role is to secure trust in money,” and that “this means making sure the euro is fit for the digital age.”
In addition, Lagarde highlighted that payment systems should maintain consistency with the needs of the consumers.
Showing his opinion on the ECB's blog, Fabio Panetta, a Member of the Board of Management, stated that while the central bank’s cash and e-payments are available through commercial banks, “a digital equivalent of euro banknotes” is lacking.
Panetta, however, noted that whether or not the Eurozone needs a digital central bank currency remains an open question.
The ECB and the eurozone's national central banks are looking in the same direction, Panetta said that it’s a very critical and pressing question, whether or not the digital euro is required and if improvements are possible it should be ready for the currency to be released.
“This means that we already need to be preparing for it,” the exec added.
Central Bankers Don't Get It
According to Panetta, a digital currency would be a shield to prevent the Eurozone from other public or private digital currencies’ influence, “issued and controlled from outside the euro area,” “which could raise regulatory concerns and threaten financial stability or even our monetary and financial sovereignty.”
This statement, from the perspective of the popular crypto analyst Hasu, is a clear confirmation of a global currency war – "the global currency war is heating up and it's no longer a secret."
A digital euro may be on the way, and it will likely give the ECB greater control over the markets. “A digital euro would complement cash, not replace it. Together, they would offer people greater choice and easier access to means of payment,” a bank official wrote.
Bloomberg reported previously that the central bank has submitted a trademark application for the term “digital euro” to the European Union Intellectual Property Office. Official confirmation came from an ECB’s spokesman.
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