ECB: If We Do Not Switch To Digital Currency, We Will Lose Control

The European Union Central Bank (ECB) has published a report on CBDC studies.

European Union Central Bank (ECB), one of the institutions that continue to work on the CBDC, has prepared a report on the subject. In this report, the ECB said, “If we do not switch to digital currency, we will lose control”. The ECB has published a report on the central bank digital currency (CBDC), which has marked the last period and focused on the studies.

“People Will Turn to Other Service Providers”

It was stated that countries that do not prefer to switch to digital currencies will have a lot of difficulty with financial systems and people may eventually turn to other institutions and companies that provide these services. “Central banks should be wary of risks such as loss of stability unless they issue digital currencies. Given that both local and cross-border payments will be made digitally in the future, people from a country that does not issue a CBDC will prefer another country's payment service provider. Countries with a CBDC will have their own autonomy in their local payment systems.”

“It Is Safer And Cheaper”

In the published report, it was also pointed out that CBDCs have both less transaction fees and greater security, and said, “CBDCs not only encourage participation in financial access, but also increase access to payment services and eliminate intermediaries. If the system is integrated with other payment services outside the country, international payments will become much easier and many problems will be solved, and the system will become more secure.”

Lagarde's Goal Is Pretty Late..

Earlier, the President of the European Central Bank, Christine Lagarde, stated that the CBDC studies continue slowly but in a full-blown manner and that such a system can be implemented in 2025 at the earliest. Experts, on the other hand, expressed their opinions that the date given by Lagarde is too late. Lagarde's targeting the year 2025; Considering that countries such as China, Russia, France and Sweden are advancing rapidly, it seems seriously late. The Bahamas, whose income is almost entirely from tourism, was also registered as the first country to issue a CBDC in 2020 and officially launched its digital currency called the "Sand Dollar".