Jens Weidmann, President of the German Central Bank (Bundesbank), warned against excessive expectations in the European Central Bank (ECB) digital euro project, noting that digital money should have a limited role in the beginning.
Weidmann, who is also a Member of the Governing Council of the European Central Bank (ECB), said in a speech at the online banking conference jointly held by the Bundesbank and the Bank of China (PBOC) that the digital euro will likely not be “all-round” initially.
Weidmann warned against excessive expectations in the digital euro, noting that digital money should have a limited role in the beginning. Weidmann reminded that a digital euro should have a limited role in the beginning as it could distort the banking sector and over-expand the role of central banking. used the phrase.
Weidmann explained that it is still “uncertain” what the digital euro will look like, emphasizing that the digital euro should have the option to add other functions later on.
Bundesbank President Weidmann cited among his main concerns that in times of crisis, consumers may rush to convert their bank deposits into central bank money, which could destabilize the financial system.
In July, the ECB decided to start the research phase of the digital euro project. On the other hand, ECB President Christine Lagarde, in her statement on the ECB’s possible “digital euro” issuance on January 13, 2021, said, “We will have a digital euro. I hope it will not take more than 5 years. For us, it is a bit to be sure that this is a logical choice. it will take time.” had evaluated.
Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.
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