ECB chief casts doubt on adoption of digital euro CBDC

According to the September research report of Chainalysis, the world Crypto economy is based on Central Europe, Northern Europe, and Western Europe. Over the past year, these regions have received approximately $1 trillion in Crypto assets. What's more, this equates to a quarter of the world's Crypto activity.

Therefore, a digital euro is a natural asset to watch. Against this backdrop, European Central Bank (ECB) executive board member Fabio Panetta recently gave a speech on CBDCs.

Panetta first pointed to the problem of declining cash usage in Europe.He thinks central banks need to issue a digital euro so people can use cash as a store of value。

“A digital euro and cash will complement each other and will ensure that central bank money remains the dominant currency of the payments ecosystem and continues to function as a means of exchange, store of value and unit of account,” Panetta noted.

At the same time, Panetta added, "For this to happen, a large proportion of the population will use the digital euro on a regular basis. But they will not necessarily use the digital euro for most of their daily payments."

Panetta also cast doubt on the success of CBDCs, acknowledging that people may prefer other Cryptos.

“Users may lack sufficient incentives to fully appreciate the public benefits of the existence of CBDC, and users may have insufficient demand for CBDC given the huge supply of private Crypto assets.”

Notably, Panetta reiterated the superiority of CBDCs over stablecoins. In an early speech by Panetta, he had hinted at possible funding challenges for central banks due to the emergence of stablecoins and called for more regulation.

Based on these comments, perhaps the creators of CBDCs are inadvertently competing with stablecoins.

Deutsche Bundesbank surveyed German citizens about their feelings about the digital euro.Likewise, the Bundesbank found that “only 13 percent of respondents support the adoption of a digital euro.”

According to reports, most opponents of a digital euro worry that it will mean the elimination of cash. However, most proponents believe that a digital euro would be a good tool and look forward to it as an option for private payments.

Meanwhile, on the other side of the English Channel, Crypto users are worried. Ahead of COP 26, UK Prime Minister Boris Johnson sparked a storm of FUD by promising action on cash.

"I will be asking world leaders to act on coal, cars, cash and trees to keep global temperature rise to 1.5 degrees," Boris Johnson tweeted.

The original text comes from ambcrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.

The original text comes from ambcrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.