In response to President Donald Trump's recent presidential decree, the European Central Bank emphasizes the need for digital Euro to maintain the European bank competitiveness.
ECB Board members, Piero Sipolon, have expressed concerns about Reuters in the United States that the United States Initiatives can separate customers from European banks, emphasizing the urgency of ECB developing their own digital currency.
President Trump's presidential ordinance aims to “promote the development and growth of stubcoin supported by legal, legal and legal dollars around the world”, and has positioned the United States as a leader of the cryptocurrency sector. Masu.
This movement is considered a potential threat to European banks. This is because stupid banks (usually fixed to US dollars) may seduce clients who are seeking an alternative to conventional bank services.
StableCoins, mainly, functions as a moneymercock fund by providing exposure to short -term interest rates for official US dollars.
In contrast, digital euro functions as an online wallet operated by entities such as banks, although the ECB is guaranteed. With this system, individuals, including those without bank accounts, can be paid, holding them for thousands of euros, and may not have interest.
Digital Euro as a threat to bank
However, European banks have expressed concern that digital euro could lead to a customer to relocate funds to the ECB wallet and reduce bank deposits.
According to Reuters, the ECB is currently investigating the practical implementation of digital euros and making a final decision to hold legislative approval from members of Europe.
President Trump's presidential decree is prohibited from issuing its own central bank digital currency, further distinguishing the US approach from potential European strategies.
As the ECB deliberates on the introduction of digital Euro, the global landscape of digital currency has evolved. Nigeria and China have already launched their own digital currency or a pilot program, reflecting a wider range of trends for the recruitment of central banks around the world.
