{"id":54515,"date":"2021-12-11T13:10:11","date_gmt":"2021-12-11T11:10:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=54515"},"modified":"2025-09-03T20:50:04","modified_gmt":"2025-09-03T17:50:04","slug":"ecb-officials-warn-of-the-negative-impact-of-the-digital-euro-on-foreign-currencies","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ecb-officials-warn-of-the-negative-impact-of-the-digital-euro-on-foreign-currencies\/","title":{"rendered":"ECB officials warn of the negative impact of the digital euro on foreign currencies"},"content":{"rendered":"<p>The digital euro could undermine financial stability in non-EU countries with weak economies, displacing their national currencies. This was stated in a speech by Fabio Panetta, a member of the European Central Bank&#8217;s Governing Council.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">?A digital euro would be a form of sovereign money provided in electronic format. It would be used by households, businesses and intermediaries to make or receive retail payments throughout the euro area, says Executive Board member Fabio Panetta <a href=\"https:\/\/t.co\/mCfEZKIadp\">https:\/\/t.co\/mCfEZKIadp<\/a><br \/>1\/4 <a href=\"https:\/\/t.co\/y2LGowDOlG\">pic.twitter.com\/y2LGowDOlG<\/a><\/p>\n<p>\u2014 European Central Bank (@ecb) <a href=\"https:\/\/twitter.com\/ecb\/status\/1469244893788835846?ref_src=twsrc%5Etfw\">December 10, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA digital euro could spread to third countries to such an extent that it displaces local currencies. This would lead to euroisation, which could hamper the conduct of monetary policy and lead to financial instability,\u201d Panetta said.<\/p>\n<\/blockquote>\n<p>He stressed that these risks would be higher for developing economies, as their national currencies are too weak and they are highly dependent on trading and financial partners.\u00a0<\/p>\n<p>Panetta also noted that the launch of the <span data-descr=\"central bank digital currency\" class=\"old_tooltip\">CBDC<\/span> in the EU \u201ccould intensify the transmission of shocks between economies and exchange-rate volatility.\u201d According to him, liquidity, low risk, and the reward rate would make the instrument attractive to international investors.<\/p>\n<p>At the same time, the official said that the issuance of a digital euro would reduce the EU&#8217;s dependence on the dollar and strengthen the region&#8217;s financial stability. Panetta called the dollarisation of international payments a \u201ccolonisation\u201d and noted that \u201ctwo American intermediaries [Visa and MasterCard] process two-thirds of card payments in Europe.\u201d<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cCBDC will raise the international role of the euro, strengthening Europe\u2019s autonomy and reducing the dollar\u2019s global dominance,\u201d he said.<\/p>\n<\/blockquote>\n<p>In June, Panetta said that the digital euro <a href=\"https:\/\/forklog.com\/en\/news\/ecb-outlines-the-digital-euros-advantages-over-private-stablecoins\">would provide better privacy protection<\/a> than private stablecoins.<\/p>\n<p>In April, ECB President Christine Lagarde said that the institution <a href=\"https:\/\/forklog.com\/en\/news\/ecb-outlines-timeline-for-digital-euro-launch\">could issue the CBDC within four years<\/a>, if policymakers approve the project.<\/p>\n<p>Subscribe to ForkLog news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener\">VK<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The digital euro could undermine financial stability in non-EU countries with weak economies, displacing their national currencies. This was stated by Fabio Panetta, a member of the European Central Bank&#8217;s Governing Council.<\/p>\n","protected":false},"author":1,"featured_media":54516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1095,1753,1410],"class_list":["post-54515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cbdc","tag-digital-euro","tag-ecb"],"aioseo_notices":[],"amp_enabled":true,"views":"6","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/54515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=54515"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/54515\/revisions"}],"predecessor-version":[{"id":54517,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/54515\/revisions\/54517"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/54516"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=54515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=54515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=54515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}