ECB not to is­sue a dig­i­tal cur­rency

Banking Frontiers - - News -

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.

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