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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,471FansLike
2,795FollowersFollow
4,195FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Kraken Exchange Onboards Swiss Bank InCore to Help Euro Clients Buy Crypto With Fiat

Swiss Bank InCore has just become the first banking institution in the nation to provide banking services to Kraken crypto exchange. The deal, which was...

Bank Of Japan (BoJ) Launches ‘Technical' Study to Experimenting CBDCs

The race to launch a sovereign digital currency is heating up as Japan became the latest country to venture into a central bank digital...

This Top Coin, Being the Worst Performer of 2020, Is A Disappointment to the Crypto Market

The fourth-largest cryptocurrency by market cap is currently trading at $0.176 in green by 1.66%, like the majority of the market. With 8.61% losses In...

Cryptocurrency Payment Processor BitPay Finally Announces Support for SegWit

Bitpay, the crypto payment processing giant, has finally integrated the segregated witness (SegWit) protocol, a second layer scalable solution to make bitcoin processing cheaper....

Crypto Hardware Wallet Ledger: ‘Funds are Safe' After ‘BigSpender' Vulnerability Found

A vulnerability was recently discovered by ZenGo in popular cryptocurrency wallets Ledger, Edge, and BRD. Named BigSpender, the vulnerability could lead to a double-spend...

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.

Start Using Crypto Today