Central bank digital currencies (CBDCs) will probably become legal tender in the jurisdictions of their issuance, the European Central Bank’s (ECB) Fabio Panetta stated.
- Panetta, a member of the ECB’s government board, stated this was “likely” at a panel in Helsinki on Tuesday, in accordance to a Bloomberg report. However, this standing “should not be taken for granted,” he added.
- CBDCs being authorized tender would give them an edge over different fee choices supplied by personal corporations and assist obtain wider use by the general public.
- “It would be quite awkward not to have legal-tender status for an additional instrument issued by a central bank,” Panetta stated.
- A doc revealed at the moment outlining the ECB’s policy considerations for introducing a digital euro lists the opportunity of authorized tender standing as certainly one of its principal areas for investigation.
- Other issues embody interplay with the European retail funds market, design decisions, use circumstances and what entrance and back-end technical infrastructure may finest deal with these points.
- The ECB has been discussing a CBDC because the begin of the 12 months and stated in July it was commencing an investigative part that will final 24 months.
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