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Despite crypto regulation gaining a lot of attention these days, this article is following the recent ECB statements of their future plans concerning cryptocurrencies.

The European Central Bank stated that it has no plans to issue its own digital currency.

The president of the ECB told the European Parliament that a lot more substantial development is needed in order for the Central Bank to even take into consideration using them. He said:

‘’Nonetheless, we are carefully analyzing the potential consequences of issuing such a currency as a complement to cash’’.

Draghi explained that the technology that can be used to issue a central bank digital currency, isn’t really been tested and before using it, the Central Bank has to set these assets through multiple different tests. These tests will eventually lead to a few more developing steps for cryptocurrencies which may potentially change the face of the technology as we know it.

Draghi summarized:

‘’With regard to the central bank administering individual accounts for households and companies, this would imply that the central bank would enter into competition for retail deposits with the banking sector and lead to potential substantial operational costs and risks.’’

Following this statement, he concluded that right now at this time there is no need to issue a specific Euro digital currency because there is a high demand for cash banknotes in Europe. The countries there are strongly keeping their hands on state-issued money despite the seemingly growing number of crypto users.

Make sure to keep up with the information about further plans of the European Central Bank because a lot can change in the near future.