As per a European Central Bank official, digital currency can be an alternative to cash. Citizens can use the bank’s funds even if cash is not used any longer. ECB Representative said Cash could Be Substituted By Digital Currency.
Benoît Georges Cœuré, the executive board member of the bank, said the ECB would observe the digital currency’s impact on financial operations.
Cœuré announced, “A digital currency of this sort could take a variety of forms, the benefits and costs of which the ECB and other central banks are currently investigating, being mindful of their broader consequences on financial intermediation.”
He said private companies can continue working in the space, adding: “But potential central bank initiatives should not discourage or crowd out private market-led solutions for fast and efficient retail payments in the euro area.”
According to Denis Beau, the former deputy governor of the Banque de France, the eurozone would come up with a payment system based on Blockchain technology. The new settlement system would be built for the euro and digital currency to identify payment related issues.
The bank’s senior officers had said that they do not consider the digital currency, Bitcoin, to be risky or a threat to financial stability.
Cœuré stated the ECB is not “ignoring” the growth of cryptocurrencies as it does not consider them to be a threat to the bank.