Board member points out that the ECB should be prepared to switch from traditional to digital currency

The European Central Bank board member Fabio Panetta said that the ECB should be prepared to have digital euros instead of notes when it is necessary.

Mr. Penetta noted that the ECB must be prepared to provide a digital euro when our circumstances demand it, and that preparations must be made for it as soon as possible.

The ECB reported that a study had revealed the benefits of electronic payments. The study found that a digital euro could help citizens leave money or take out electronic money in foreign currency or other means of payment.

Major central banks are studying the creation of digital currencies officially sanctioned by the Central Government to address electronic payment requirements and avoid competition from Bitcoin and other crypto currencies.

Even when planning such a project, it remains a major concern that such payments will displace traditional investments, avoid commercial banks and collect private solutions. This is underlined by the words that last month the Irish Central Bank governor, Gabriel Makhlouf, said that the advent of the digital euro would never be a substitute for cash.

While addressing to the economic think-tank, Mr. Makhlouf said that the transition to digital payments has a number of repercussions on monetary policy, especially as it may lead to a weakening of the central bank’s control of the money supply.

However, the project is now open for public consultation. The ECB itself gave them time until the middle of next year to decide whether to proceed with this.