Association of German Banks (Bankenverband) Shares Reasons for a Programmable Digital Euro

    Germany Banking Association of over 200 private commercial banks and 11 member groups presented a new paper on how the economy can benefit from creating a programmable digital euro.

    On Wednesday, October 30, 2019, the Association of German Banks (i.e. Bankenverband) released a paper making several arguments as to why a digital euro is necessary, reports Coin Telegraph. The paper, in the closest translation possible, dubbed, “Beyond Libra: Why Business Needs a Digital Euro,” gives up to 10 reasons why the idea might come across as appealing to readers.

    One of the main arguments made thus far is that any currency issued outside of the sovereign nation-states could lead to corruption. That is, any currency established by banks or private companies should belong to a state-determined system, otherwise, it could “lead to chaos and instability.”

    The end solution? A digitalized Euro that is “clearly identifiable.”

    Furthermore, the paper argued,

    “With every form of digital money, customers should be identified using a standard that is just as strict as that which banks and other obligated entities are required to apply under currently legal framework.”

    Just like any country would fear and want to overcome, the Association of German Banks also noted that it is essential that such a system be in place in order to rid money laundering and terrorist financing.

    Another obvious point made in urging for a digital euro simply rests in ensuring that Europe is up-to-date and running amidst other competing countries within this area. To be more specific, they want to ensure that customers’ needs are satisfied while boosting Europe’s competitive nature – all of which can be done by introducing the digital asset.

    Given Europe’s faith for what’s to come for digital assets, they shared that they will still do what it takes to preserve their existing monetary system, that way it is not at risk.

    Pro-Digital Euro, Iffy on Crypto and Stablecoins?

    It seems like Bankenverband is not in favor of private coins like Libra, as they’ve since requested international policymakers to take on their roles in ridding competition from private currencies altogether.

    The entirety of this paper seems to align with German Finance Minister, Olaf Scholz, reports the news outlet, who has previously voiced that countries such as China, Russia and U.S. shouldn’t be the only ones competing.

    However, the President of the European Central Bank, Mario Draghi previously shared that,

    “stablecoins and crypto-assets have had limited implications in these areas and are not designed in ways that make them suitable substitutes for money.”

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Nirmala Velupillai
    Nirmala Velupillai
    Nirmala is a blogger who has been fascinated by the world of technology and its contributions to societal development. While a novice, her eager to learn about the crypto world has led her to write a number of pieces on its positive and negative aspects. On her spare time, she indulges in understanding and building statistical models and enhancing her painting skills.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    44% Think Bitcoin's in a Bull Market & Alt-Season Will Occur in 2020: Kraken Survey

    In the currently unstable environment where industries are laying off, cryptocurrency exchange Kraken is on a hiring spree as it moves ahead to expand...

    Bitmain Releases Antminer E3 Firmware Update to Keep It Mining ETH Till October

    Mining hardware firm, Bitmain, set to extend the durability of its once “most powerful Ethash miner” from April to October 2020. The mining firm...

    Tether Prints over a Billion USDT in March, Rising Demand or Exchange Run?

    We are about to end March, a month that saw the price of bitcoin hitting $3,850 and ready to end the quarter with over...

    Bitcoin Beating Gold But What will Hold its Value Better in Five Years?

    The price of bitcoin is currently trading in the green by 2.34% as it trades around $6,450. Although down 11.89% YTD and about 34%...

    Lightning Labs New LSAT Protocol Promises To Do Away With Usernames And Passwords

    A statement from Lightning Labs CTO, Olaoluwa Osuntokun, revealed the specs of the Lightning Service Authentication Tokens (LSAT) which is expected to act as...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.