ECB’s Board Member: Central Bank Digital Currencies Unlikely in the Next Decade
Central bank-issued digital currencies have somewhat become a widely discussed topic, as more and more countries begin exploring them. However, according to a board member of the European Central Bank, they won’t be issued within the next decade.
ECB on Central Bank Digital Currencies
A board member of EU’s Central Bank Benoit Coeure shared his take on central bank-issued digital currencies on Thursday, Reuters reports.
According to the specialist, central banks are unlikely to issue digital currencies in the next decade. He also holds that this won’t happen even in countries where the use of cash is quickly declining.
There is broad agreement that a (central bank digital currency), in whatever form, is unlikely to be issued within the next decade, even among those four central banks that have indicated that they have reached the stage of developing a pilot project. – said Coeure.
It seems that the ECB has truly consolidated their stance on the matter, as earlier in September Live Bitcoin News reported that the bank had no plans to issue a central bank digital currency and that cash remains king.
Increasingly Popular Nonetheless
Despite ECB’s position, it can’t be denied that central bank-issued cryptocurrencies are a topic growing in popularity. According to the president of the ECB himself, a digital currency of the kind could, in theory, widen the range of economic actors:
In principle, a central bank digital currency could meet demands for both the security and digitalisation of the economy. It could also allow monetary policy to reach a wider range of economic actors more directly.
What is more, for countries such as Iran, for example, cryptocurrencies represent a way to possibly avoid US-imposed economic sanctions. As such, the Central Bank of Iran (CBI) has decided to launch its own cryptocurrency backed by the local fiat Rial.
Singapore’s Central Bank is also an example of a receptive financial institution. According to Damien Pang, the city-state intends to approach the field in a way which enhances it, rather than restricts it:
We take an approach where our regulations aim at the purpose rather than the technology platform itself. […] We aim not to directly regulate a specific technology itself, because technologies are always getting better.
What is your opinion on central bank digital currencies? Don’t hesitate to let us know in the comments below!
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