Bank of Finland governor stresses digital euro’s importance in transforming monetary landscape
German President Olli Rehn expressed support for the European Central Bank (ECB) program's regional digital currency, the euro.
At a group meeting at the University of California, Rehn boasted that the digital euro is an integral part of the monetary system, as shown by the current situation of digital currency. In his opinion, because of inflation and quantitative easing policy, investors seem to lose confidence in cash, and high-risk digital property, or what he called personal digital currency, has been spreading in the monetary system.
However, on the premise of creating opportunities for innovation and tolerance in the financial industry, digital property is tested by the government because of its uncertainty and relatively high vulnerability. Their low processing capacity also makes it impossible for them to pay. Ryan believes that the central bank's digital currency (CBDC) can fill most of the shortcomings of digital assets. In terms of digital euro, it also gives Pan European payment options for retail and cross-border e-commerce digital payment.
He added that the European Central Bank has developed and designed a digital euro, which has established the need for no nerves, earnings management, safety factor, efficiency, personal privacy and compliance with the Constitution
"An economy dominated by digital payments but without a strong currency anchor will be inherently unstable... The moral bottom line is that the central bank should always give a currency anchor to economic development - if the European Central Bank decides to sell digital euros, it will be the main factor," he guessed.
The European Central Bank has been working on the digital Euro so far
According to a report of the European Central Bank, Rehn's statement reflects the general mentality of most central banks in exploring CBDC. The report found that CBDC was called the only feasible solution to maintain the stability of the monetary management system in the digital era.
Last year, the European Central Bank started the consultation work on the digital euro, preparing to determine its operation before 2023. After a series of reports, the Central Bank of the region has completed the first stage of consultation, including the personal privacy that the central bank is likely to have.
In July, the president of France, Fran ç OIS Villeroy de garhau, announced the second stage of negotiations. This link will include the testing of the digital Euro prototype used in retail and wholesale, as well as further current policy adjustments.