European Central Bank embraces digital euro
Fabio Panetta of the ECB claims the proposed legislation on the region's digital euro would be beneficial to European citizens while keeping the monetary policy on a tight leash to avoid instability.
Fabio Panetta of the ECB claims the proposed legislation on the region's digital euro would be beneficial to European citizens while keeping the monetary policy on a tight leash to avoid instability.
The digital euro will be distributed to residents and merchants in the Euro Area first, but European Central Bank admits that all the authority lies with the European Parliament.
In a new document, the European Central Bank breaks down the incentives and compensation of the digital euro, saying it combines digital payments with cash.
Fabio Panetta says that this would limit the risk of disintermediation of the banking system should the majority of people decide to save with the central bank.
Among the responses, the bank said it had received a number of helpful technical contributions on how best to realize the digital euro.