The president of the monetary authority of Germany argues for a digital currency of the Central Bank (CBDC).
In a question and answer session with economists at the official Monetary and Financial Institutions Forum (Omfif) Think tank, the president of the Deutsche Bundesbank, Joachim Nagel, says he supports a CBDC.
The Omfif quotes Nagel and says that “CBDCs will play a role in the future resilience” of Europe and will help protect the sovereignty of the euro zone. Nagel says that CBDCs are an audience good that central banks have to offer.
According to the think tank, the Deutsche Bundesbank president regards the rise of American companies in the global payment sector as a potential threat in the future, because they can be used in a digital environment as a form of weapon ‘, a prospect that it makes for Europe to find a backstop measure.
The think tank also quotes the Deutsche Bundesbank president and says that it is “too early to tell” how CBDCs, as well as digitization, can influence neutral interest rates – the interest rate that strives for the European Central Bank to ensure that inflation remains stable And the economy remains at full work.
The Omfif also says that Nagel against Bitcoin (BTC) becomes a form of a reserve currency. The President of the Central Bank sees Bitcoin as a “digital tulips” that is the “opposite of transparent”.
“This is not something that central banks have to look. This is not a liquid form of something you want on the balance. We should be very careful here. ‘
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