A possible digital euro currency, which the European Central Bank is studying, could have several benefits such as facilitating cross-border payments and providing a digital monetary anchor, Finnish ECB policymaker Olli Rehn said on Tuesday.
The investigation phase for the digital euro is expected to be concluded in October 2023, Rehn said in a speech at the University of California, published on Wednesday.
The ECB would then decide whether to start building a digital euro, Rehn said.
He saw several possible benefits to the idea of introducing a central bank digital currency, such as expanding the availability of central bank money to include payments between ordinary people from transactions between banks only.
“A digital euro would give people an additional choice about how to pay and would make it easier to do so in an increasingly digital economy,” Rehn said.
He said existing private crypto-assets’ limitations were “structural”, due to their volatile prices and vulnerability to cyber risks.
“A digital native form of safe central bank money could enhance stability by providing the neutral trusted settlement layer in the future financial system,” Rehn said, echoing recent comments by US Federal Reserve Vice Chair Lael Brainard.
In June, the Fed finished a four-month public consultation period seeking opinions on the idea of introducing a digital dollar, with Fed Chair Jerome Powell speaking in favour of it.
He said existing private crypto-assets’ limitations were “structural”, due to their volatile prices and vulnerability to cyber risks.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Extends Support for Farms and Fisheries Amid Market Disruptions
May 5, 2024 by
CPI
Sony and Apollo Bid $26 Billion for Paramount Acquisition
May 5, 2024 by
CPI
Goldman Sachs Resolves Decade-Old Metal-Rigging Class Action Lawsuit
May 5, 2024 by
CPI
Italian Antitrust Ruling Puts Halt on Intesa Sanpaolo’s Fintech Ambitions
May 5, 2024 by
CPI
Google Antitrust Case: Closing Arguments Conclude
May 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI