European Central Bank chief whip, Mario Draghi, on Wednesday, sent a letter to a colleague, in which he aired his opinion on stablecoins, the possibility of a digital Euro, as well as the future of digital assets. The ECB head revealed that his organization was looking into digital assets and, thus far, hasn’t found any reason to consider them a threat to the Union’s financial system.
In the document addressed to member of European parliament, Eva Kaili, Draghi stated that the European System of Central Banks (ESCB) was closely monitoring the digital currencies space. Their investigation has, so far, turned up little evidence that suggests cryptocurrencies are of any value. He did, however, go on to say that, owing to the continuous technological advancements in the field, that may not always be the case.
“Thus far, stablecoins and crypto-assets have had limited implications in these areas and are not designed in ways that make them suitable substitutes for money.” – ECB President, Mario Draghi
Draghi On Digital Euro
The ECB chief went on to discuss the possibility of a digital version of the European Union currency, The Euro. From a technological point of view, Draghi has no doubt that it is possible, but what still needs much finding out is the European stablecoin’s utility in terms of costs and benefits to the public. Draghi also took the liberty of mentioning Europe’s Target Instant Payment Settlement service, adding that:
“It enables payment service providers to offer fund transfers to their customers in real time and around the clock, every day of the year.” – Draghi
On the same day, European Central Bank executive board member Benoît Cœuré gave a speech decrying the lack of European online payments solutions (which has lead to Europe relying on non-European payment service provider). To prevent the risk of European consumer data being appropriated and used maliciously, he stressed the need for either, a Central Bank Issued digital currency, or an alternative digital payments solutions.
“The only effective response to these risks is for European stakeholders to step up their collaboration and act together to provide payment solutions that both reflect the demands of consumers and strengthen the Single Market,” – Cœuré
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