More than 200 German banks want to use a European digital currency

Latest

More than 200 German banks part of the Bankenverband association demanded the EU officials to consider the creation of a Digital Euro.
As the banks want to have an increased level of control over their financial operations, they are naturally looking to take advantage of blockchain technology’s main benefits so they can better track and control the financial flow inside the European Union and outside its jurisdiction.
The establishment of a Digital Euro is an element that has been taken lately into account by the European governments, especially those in Germany and France, so they can better face the future competition that would come from private parties and state-controlled institutions. We are obviously thinking about Facebook’s Libra, Telegram’s TON and the Chinese digital currency.
Coming back at Bankenverband, we have to say that this is the main banking association for private financial institutions in Germany and they have multiple times analyzed the way a Chinese cryptocurrency or Facebook’s Libra would affect the German space and further on, the European Union financial system.
Among the 200 banks, the most popular banking institution is of course Deutsche Bank and they have equally mentioned in several occasions that the creation of a Digital Euro, crypto-based or not, would bring substantial advantages to the European financial space.
For this reason, we have to emphasize that a future Digital Euro may look like a cryptocurrency from outside (somehow similar to Facebook’s Libra), but the specialists are saying that the digital coin would have to comply with all Anti-Money Laundering, Anti-Terrorist activities and Know Your Customer regulations that currently apply to all financial organisms in Europe.
The above-mentioned elements are surely integrated into the Chinese cryptocurrency when we consider that China is really interested to track and control its citizens’ financial activities, but in Europe things are completely different. Europeans have always been proud of the democracies they established, and they always cherished their individual rights, from freedom of speech to personal privacy.
Will Europeans accept to have their financial operations tracked or will they move into privacy-focused cryptocurrencies?

Leave a Reply

Your email address will not be published. Required fields are marked *