ECB outlines use cases for the digital euro
The digital euro could provide access to simple and secure payments, but its rollout also carries risks. This was stated by Fabio Panetta, a member of the European Central Bank’s Executive Board (ECB).
The new payment instrument will help digitalise payments and modernise the European economy, he emphasised.
Panetta noted that the digital euro could be necessary in a number of circumstances — for example, in the context of a mass move away from cash. It could also be needed if other electronic payment methods become unavailable due to disasters or ‘foreign digital payment means displace domestic money’.
What is central bank digital currency (CBDC)?
Among the risks of introducing the new instrument, Panetta cited cyberattacks, as well as potential impacts on financial stability and the banking system.
Earlier in October the ECB published a report on the possible issuance of a digital euro and said that consultations and experiments with CBDC would begin soon.
On why central banks around the world are pursuing their own digital currencies, read ForkLog’s exclusive.
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