German banks have recently presented a position paper in which they argue in favor of a digital euro.
The paper was released yesterday by the Association of German Banks (Bankenverband). Its members number more than 200 private commercial banks. 11 of the member associations have stated that the economy has a drastic need for a “programmable digital euro.”
According to some of the members, the monetary policy should be controlled only by the state. The paper states that all responsibility for the monetary system belongs to the sovereign nations. It’s mentioned that if the currency provided by banks or private companies does not fit into the state-determined system, instability and chaos will be the most likely results.
Most banks agree that a digital euro will become a necessity sooner or later
The banks argue in favor of a cryptography-based digital euro. According to them, the currency should be created on the condition that a concurrent, common, pan-European payments platform is also developed simultaneously.
Bankenverband however, believe that such a system will only be possible if it’s based on a common standard and a common currency. The main priorities should be to reduce transaction costs, satisfy customers and maintain Europe’s competitiveness.
This of course led to the mentioning of Libra. The paper stated that if the digital euro is set to compete with other official key currencies in the world economy, as well as Libra, this would most likely cause incredible economic and political conflicts.
Olaf Scholz, the German finance minister, recently advocated in favor of launching a digital euro. He also expressed his worries that China, the United States and Russia should not go uncontested in a new field, which will prove to be the main battleground for economic superiority in the next few years.
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