ECB, Panetta: ‘Introducing the digital Euro’

“If the ECB decides not to introduce the digital euro, Europe could find itself in a situation in the future in which the offer of payment services is dominated by foreign operators such as global technology giants, able to offer on a large scale artificial forms of money “. This is what Fabio Panetta, a member of the ECB board of directors, writes in a passage from the speech published on the central bank blog. «Such a situation – he observes – could accentuate the vulnerability of our financial system and subject families and businesses to the choices of a limited number of operators with strong market power. Preparing for the digital euro therefore represents a way to protect Europe’s autonomy and to avoid unwanted scenarios ». These scenarios are not imminent – continues Panetta, but citizens can nevertheless rely on the Eurosystem – the ECB and the eurozone national central banks – in order to follow the evolution of these risks and be ready to counter them. «It is not surprising that some observers today do not perceive the potential benefits of a digital euro – continues Panetta – But public institutions have the task of identifying future challenges in a timely manner and preparing in time to face them; they must act with far-sightedness in defense of the interests of citizens, even if the path of prevention does not always lead to glory ». Unlike private companies or technology companies, “which base their success on the exploitation of large amounts of data, central banks do not operate with the aim of maximizing profits, nor do they derive income from possessing personal information or from ‘exercise of market power’. The objective of the digital euro would therefore be «to offer citizens an innovative, secure, stable payment instrument thanks to the commitment in its favor by an independent central bank. It would be both a prerequisite and an integral element, not an alternative, to the development of a modern private payment system. If introduced, it can be used without cost and with respect for privacy, ensuring the possibility of making digital payments anywhere in the euro area ».