ECB: Central Bank Digital Currencies Could Be Used To Improve Payment Systems

A digital currency could be used by the European Central Bank (ECB) in order to improve payments around the world. According to a document released by the ECB, adoption of this digital asset could be accelerated due to the lower cash usage in several countries.

ECB Analyses Effects Of Digital Assets

As reported by Reuters, the ECB is analyzing the effects of creating a digital currency that would make international payments cheaper. This would only be implemented or planned only within Europe and if payments across the continent remained too expensive.

Considering that the digital currency could have large implications for financial, monetary and economic stability, the implementation of this currency should be carefully studied and assessed.

This document is expected to be presented to Finance Ministers of the European Union on Thursday.

At the same time, Christine Lagarde, the president of the ECB, explained at her first hearing before the European Parliament that central banks may adopt a digital currency.

Mrs. Lagarde has always been very positive about digital assets and central bank digital currencies (CBDCs). When she was the president of the International Monetary Fund (IMF) she has supported different researches on the matter and showed they were open to discussing positive and negative aspects of CBDCs if implemented.

According to Lagarde, users will be able to use central bank money for daily transactions. Nevertheless, there are some risks that must be assessed in terms of monetary policy and how it could affect the real economy. This is in line with what the aforementioned document explains.

The European Central Bank has established negative interest rates in the economy in order to promote economic growth through spending rather than through investment and savings. Some banks are already passing these negative interest rates to clients.

The ECB is also a key player in Europe’s economy considering that it has been working as a lender of last resort to banks in all the continents.

There are several countries that have already analyzed the possibility to implement CBDCs in the economy. Some of these countries include the UK, Ukraine, Canada and Uruguay, among others.

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.

Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[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

3,478FansLike
2,795FollowersFollow
4,199FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

The Good and Bad of the Crypto Going Public

This week, big news came in the form of crypto businesses that are planning to go public either later this year or next year. Crypto...

US Secret Service Has Modernized Its Role in Tackling Financial Crimes in The Crypto Era

The role of the US Secret Service, whose purpose extends from protecting the US President Trump to protecting the US financial systems, has...

Bitcoin is in a ‘Consolidation Zone,' We’ll Move to $14,000 Once BTC Gets Above $10k: Mike Novogratz

Bitcoin is about system change, said Mike Novogratz, CEO of Galaxy Digital, in his latest interview with Barron’s Carleton English. While talking about the catalysts...

Volvo Invests In Blockchain Traceability Startup Circulor To Track Cobalt Supply Chain

Volvo Cars Tech Fund, a subsidiary of Volvo, announced its investment in blockchain traceability firm Circulor on July 8. The popular carmakers have used...

Blockchain Developer Platform Releases Alchemy Build, A Tool Suite for Faster Production

Alchemy, a blockchain startup, focuses on building developers' tools to help them become more productive and focus more on actual product development. The blockchain...

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