ECB not to issue a digital currency
The European Central Bank said it has no intention of issuing a central bank digital currency. President Mario Draghi said the current economic conditions fail to justify a need for it. Addressing the European Parliament, Draghi outlined a few reasons for why the ECB has no plans to issue a unified digital currency. He said in the first instance, the distributed ledgers have not yet been thoroughly tested and require substantial further development before they could be used in a central bank context. Besides, he felt a staterun cryptocurrency will put the private banking sector and Central Banks in direct competition. When the central bank administers individual accounts for households and companies, it would imply that the central bank is entering into competition for retail deposits with the banking sector, he added.