ECB; Control Loss If Digital Currencies Is Not Moved

The European Union Central Bank (ECB)
The European Union Central Bank (ECB)

ECB Published A Report on Digital Currencies 

The European Union Central Bank (ECB), one of the institutions that continue to work on the CBDC, has published a report on the subject. The report stated that a central bank digital currencies that does not reach the public will not be successful and will lose its supremacy within the country. 

The European Union Central Bank has published a report on the central bank digital currencies (CBDC), which has been the most talked about and focused on the studies of the last period.

ECB Thinks People Will Turn to Other Service Providers 

It was stated that countries that do not switch to digital currencies will have a lot of difficulty in financial systems and people will eventually turn to other institutions and companies that provide these services:

“Central banks should be wary of risks such as loss of stability unless they issue digital currencies. Given that both local and cross-border payments will be made digitally in the future, people from a country that does not issue a CBDC will prefer another country’s payment service provider. Countries with a CBDC have their own autonomy in their local payment systems.”

Digital Currencies are Safer and Cheaper 

ECB, which publishes a report on digital currencies also wrote that CBDCs have both less transaction fees and greater security:

“CBDCs not only promote participation in financial access, but also increase access to payment services and eliminate intermediaries. If the system is integrated with other payment services outside the country, international payments will become much easier and many problems will be corrected, and the system will become more secure.

ECB President Lagarde Targeted 2025

As it will be remembered, ECB President Christine Lagarde said that CBDC studies continue slowly but fully and that such a system can be activated in 2025 at the earliest. Experts, on the other hand, expressed their opinion that the date Lagarde gave was seriously late.

Lagarde’s targeting the year 2025; Considering that countries such as China, Russia, France and Sweden are on their way rapidly, it seems quite late. Bahamas, whose income is almost entirely from tourism, was the first country to issue a CBDC in 2020 and officially launched its digital currency called “Sand Dollar”.

SEE ALSO; Cryptocurrencies for Central Banks

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