A few days ago, the Association of German Banks declared itself in favor of issuing a digital euro. Because of this, a thorough report was issued explaining why the economy is in need of a currency like that.
Did Libra start a revolution?
All these debates were initiated by Facebook's plans for emission of a global currency. Even though the assumptions implied that this stablecoin is supposed to be a proprietary of an independent association, Calibra, many people identify it with the social media giant only. Hence, since the Libra White Paper has been issued, many discussions and controversies concerning this project have arisen. It is worth remembering, that what has prompted some countries to accelerate work on the virtual currencies of their own were the announcements related to the launch of this digital coin. An example is, for instance, China, which, shortly after the interrogation of Mark Zuckerberg before the US Congress, felt threatened and started blockchain revolution in their country overnight.
According to the opinion of the Association of German Banks, Libra has urged the policymakers to lively discuss how the global monetary system will look like in the digital age and who, in reality, will take responsibility for shaping it in the future. As he published report shows, a stable currency which is not threatened by cryptographic money should be the basis of every economic structure.
A private global digital currency competing with the official key currencies of the world economy would not solve any problems. Instead, tightening of the economic conflict would be highly likely.
- claims the Association of German Banks.
Digital euro as an innovation with a huge potential?
As German private banks believe, programmable digital money has great potential. The published report highlights, among others, the dynamically changing needs of consumers who do shopping online more and more often. New business models have an impact on the national economic structure. The digitization of everyday life requires proper preparation, though, that is mainly meeting the relevant legal requirements.
All innovators must comply with a supervisory and regulatory framework. The emission of programmable digital money should be in accordance with the applicable provisions of the banking license.
The Association of German Banks strives to bring current financial systems into a new era, which is why it opted for the creation of a digital euro and a common European-wide payment platform.