ECB explained the importance of digital euro to preserve financial stability

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Economists of the European Central Bank believe that digital euro is essential for the future financial system, since it is able to withstand «artificial currencies», issued by private companies.

In the latest report, the ECB states that in the future, large corporations can release their own artificial currencies, which will begin to prevail in international and internal payments. The dominance of a small group of private foreign suppliers will be a threat not only for individual individuals and legal entities, but also the stability of the financial system as a whole.

According to the authors of the report, the Central Bank’s digital currency (CBDC) is able to successfully compete with such artificial currencies and resist their dominant, helping to preserve the autonomy of payment systems. However, for this it will be necessary to offer additional products and services based on digital euro, expanding the scope of its use.

Additional advantages of using CBDC ECB economists include the modernization of the payment infrastructure and the decline in transactional expenses, which will contribute to the expansion of global commerce. The authors also emphasize the need to stimulate the use of digital euro by providing the anonymity of users and the possibility of offline payments.

At the end of last year, the Board of Governors of the European Central Bank noted

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