ECB Will Not Interfere With Private Company Stablecoins

ECB will not be getting into private company stablecoins despite their considerations of launching their own CBDC according to the bank’s President Christine Lagarde so let’s find out more in the latest cryptocurrency news.

Lagarde mentioned in a recent interview that they will have to adjust to the changing world and that ECB will not interfere with any private company that issues stablecoins or any other similar form of digital payment. She continued to say in an interview that there are many interesting financial topics including the potential launch of a central bank digital currency so according to her, the ECB does not want to get behind the current trend saying that ‘’

 “[we] want to play an active role in this field, rather than just acting as observers of a changing world. In terms of the road ahead, the ECB will continue to assess the costs and benefits of issuing a central bank digital currency (CBDC) that would ensure that the general public remains able to use central bank money if the use of physical cash eventually declines. […] We are looking closely into the feasibility and merits of a CBDC, also because it could have major implications for the financial sector and for the transmission of monetary policy.”

Lagarde talked about the recently established expert task force of the ECB which works closely with the national central banks in order to research the potential benefits of the digital euro. The ECB president also mentioned the idea of CBDC’s issued by the private sector such as projects like Facebook’s Libra. she urged for the lack of interference in this manner and said that ‘’the prospect of central bank initiatives should neither discourage nor crowd out private market-led solutions for fast and efficient retail payments in the euro area.’’

On the other hand, the President of the German Central Bank Jens Wiedmann believes that the central banks should do whatever they can to minimize the need for privately-owned digital currencies. Furthermore, he was very cautious about the digital euro and noted that the European Union and the European Central Bank should be more considerate and careful before launching a new product and that they will have to define it and its purpose before launching it to the public.