Fabio Panetta on the Digital Euro

Summary:
In a speech, the ECB’s Fabio Panetta argues that a digital Euro is necessary because [i]n the digital age … banknotes could lose their role as a reference value in payments, undermining the integrity of the monetary system. Central banks must therefore consider how to ensure that their money can remain a payments anchor in a digital world. He argues that outsourcing the provision of central bank money [to stable coin providers] … would endanger monetary sovereignty [as would the absence of a national digital currency]. Panetta also argues that a digital Euro could improve the confidentiality of digital payments and increase choice and reduce costs and should avoid interfering with the functioning of the financial system and be available within private payment solutions. Panetta does

Topics:
Dirk Niepelt considers the following as important: *, Central bank digital currency, Confidentiality, Digital Euro, European Central Bank, Fabio Panetta, Monetary sovereignty, Notes, Payment

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