New means of payment: Weidmann is stepping on the brakes with the digital euro

Bundesbank President Jens Weidmann speaks at a financial conference in Frankfurt in June.
Image: Bloomberg

The Bundesbank President advises a step-by-step approach. This includes the option of expanding the functions later.

B.undesbank President Jens Weidmann has warned against excessive expectations when it comes to the project for a digital euro. So far, it is only vaguely possible to see what such digital money could look like, he said in a virtual opening speech on Tuesday at a joint symposium of the Bundesbank and the Chinese central bank PBOC. “It may not be a jack-of-all-trades,” he added. In his view, given the risks associated with such a project, it would be advisable to proceed gradually. First of all, a digital euro with a specific range of functions could be created. This could also include the option to add further properties later.

In July, the European Central Bank (ECB) set an important course for the possible later introduction of a digital euro. It now wants to determine the core properties of a digital euro in a two-year research phase. It could be another five years before the digital euro arrives. However, the Bank for International Settlements (BIS) has called on the central banks to push ahead with their work on digital currencies. Otherwise, they threatened to be left behind by the digital initiatives of large technology groups. International technology groups such as Facebook are entering the market with their own cyber currencies.

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