The ECB sees no need for a national cryptocurrency

[Paha87]

The European Central Bank (ECB) has no direct plans to issue its own cryptocurrency and does not see the need for this. However, according to its President Mario Draghi, the Bank "carefully analyzes the potential consequences of issuing such a currency as a Supplement to cash."

In a letter to the European Parliament this week, Draghi said that " in its analysis, the ECB is considering the implications for monetary policy, payment systems, financial stability and, more broadly, the economy from issuing a national cryptocurrency."

The ECB President said:


                                   



From an economic point of view, the introduction of a digital currency from the Central Bank could potentially bring both costs and benefits, which would depend on its specific features. A cryptocurrency from the Central Bank could meet the security and digitization requirements of the economy and allow monetary policy to more directly reach a wider range of economic actors. On the other hand, the cryptocurrency issued by the Central Bank, which will serve as an alternative to money, can affect the intermediation and leverage in the banking system - the traditional role of commercial banks.

Mario Draghi also mentioned several reasons why the ECB is not currently considering issuing a digital currency, including the volatility of distributed Ledger technology and the possibility of Central banks ' participation in competition with the banking sector.

A similar view was expressed earlier this year by a senior official from the Swiss national Bank. Both indicate that interest in cryptocurrencies issued by state or Central banks among financial regulators and government agencies is declining.

Link to information resource - https://altstake.io/news/ecb-ne-vidit-neobhodimosti-v-nacionalynoy-kriptovalyute

[fallenangel1789]

I suppose this is a good news. Mastercard ceo was not favor of decentralize cryptocurrencies. They want to see national cryptocurrencies. National and centralized currencies are against value of blockchain technology.