Continuing along with the proliferation of postings on CBDC’s, this referenced version appears in Bloomberg and speaks to the ECB report on the digital Euro, for which an announcement on a go-forward effort is expected sometime soon. The brief posting references the report, which was released today and can be found at the ECB site, and is one in an annual series of reports on the role of the Euro in international transactions.
Although the report itself requires some time to review, the summary provides an ECB warning about failure to act, which in and of itself provides what one would expect to be their path forward.
‘Countries that decide not to introduce digital versions of their currencies may face threats to their financial systems and monetary autonomy, the European Central Bank warned….Consumers and businesses in places that don’t have their own digital currency could end up being reliant on a small number of dominant payment-service providers, including foreign tech giants, the ECB said in a report published Wednesday. That could affect the central bank’s ability to fulfill its mandate and act as a lender of last resort, the ECB said.’
There is also the ongoing intrigue about how CBDCs may foster better x-border experiences, something we have been following now for some time.
So readers who wish to learn more about the overall scenario can download the report from the ECB. Otherwise, the indicated summary provides the gist of the expectations and one can keep current with events through subsequent postings, which we expect will be frequent events.
‘“Fostering the international role of the euro is not a prime motivation for issuing a digital euro,” according to the ECB researchers. “However, if the use of a digital euro in cross-border payments were allowed – a decision that remains to be taken – this would also have implications for the international role of the euro.” ‘
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group