An association of more than 200 private German banks has called for the issuance of a digital Euro.
According to a paper published Oct. 30, the Association of German Banks, a lobbying group for more than 200 private banks, has called for the issuance of a “programmable digital euro.” The lobbying group highlighted the recent impact of Facebook’s digital currency libra, drawing increased regulatory attention which now has policymakers examining the financial system in a digital age.
Policymakers, above all, have recognised that this initiative raises the question of what the global monetary system will look like in the digital age and who will shape it in the future.
The Association argued that currencies must remain sovereign-backed in order to avoid “chaos and instability,”
There can be no question that responsibility for the monetary system lies, and will continue to lie, with sovereign national states. Any currency provided either by banks or by other private companies must therefore fit into the state-determined system. Anything else would ultimately lead to chaos and instability.
However, the lobbying group called for the issuance of a digital euro and the creation of a common pan-European payments platform to bring financial systems into the digital age.
According to the paper, German private banks recognize the “great potential” in digital money and are willing to do their part to help lawmakers and regulators lay down the necessary foundations for a “digital innovation.”
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