The chief economist of the European Central Bank (ECB), Philip Lane, said that Europe needs a digital euro to counteract the support point that the states together with the dollar and the US electronic payment systems. UU. They are winning in the financial system of the region.
The prevalence of electronic payments provided by large technology companies, such as Apple Pay, Google Pay and Paypal, “exposes Europe to economic pressure and coercion risks,” said Lane, according to the text of a speech at University College, Cork in Ireland on Thursday.
“The digital euro would provide a safe and universally accepted digital payment option under European governance, reducing the dependence of foreign suppliers,” said Lane. “The availability of the digital euro would also limit the probability that the stable of foreign currency currencies win a point of support as a means of exchange in the euro zone.”
Lane said that 99% of the Stablecoin market is composed of files linked to the US dollar. This raises the possibility that the stable in dollars are gain land in the euro area and the payment systems are “directly or indirectly anchored by the dollar instead of the euro.”
The ECB, such as central banks in other economies developed worldwide, is exploring the possibility of introducing a digital currency of the Central Bank (CBDC). Addressing the competition raised by Stablecoins and corporate administration payment services are often among the reasons cited to do so.
The case of a CBDC can be greater especially for the ECB, since the Eurozone covers multiple countries, said Lane. The single currency is used in 20 Member States of the European Union, and the Eurozone lacks a unified payment system due to various standards inherited from one country to another.
“The digital euro presents a unique opportunity to overcome persistent fragmentation in retail payment systems throughout the euro area,” he said.
