Kriptokoin –We live in a world where we rarely move, but usually react. Europe is playing on this trend.
From the east and west of the continent, digital currencies are rapidly embraced. On the other side of the Atlantic, the social media giant Facebook introduced the “World Currency” Libra and sent shock waves to the corporate and dominant world. On the other hand, Beijing has announced that it has been working in the digital version of the Chinese yuan for more than a year.
He was caught on both fronts as a European waller, and now he is trying to respond by eliminating the possibility of his own central bank -backed digital currency. In an recent interview with CNBC, Beatrice Weder Di Mauro, President of the Economic Policy Research Center (CEPR), points to the need for a European digital currency. The interesting thing to note here is not the first person to recommend the same thing.
Following the hearing of Mark Zuckerberg at the US Financial Services Committee on 23 October, Di Mauro thinks Libra’s “probably not”. Regardless of the fate of Libra, the President of the CEPR uses the words “The Central Bank has already shook the community”.
Libra’s Effect
An important impact of Libra is the possibility of dominant digital currencies, as China plans to launch the market from a central banking perspective.
At this point, Di Mauro really shows that an international currency system with a global currency will be more advantageous than we have now that the dollar is a tremendous dominance. ” He uses his statements.
Such a digital currency does not need to work with a temporary request and even support the US dollar. In fact, it can displace the dollar as pointed out by other European Central Bank officials. Di Mauro also supported the allegations made by Mark Carney, the President of the Central Bank of the UK a few months ago, and uses the words, “Central banks throughout Europe can come together to make a digital currency.”
Synthetic hegemonic currency (SHC)
At the Jackson Hole, at the Wyoming Economic Policy Symposium, Carney had to replace a digital currency supported by central banks.
“It is a clear question whether such a new synthetic hegemonic currency (SHC) will be provided by the public sector through the network of a central bank digital currencies.”
Di Mauro turned to a similar feeling and said that such a currency could be a very good possibility in the near future. Di Mauro uses the following statements in his statements:
“If the central banks come together, they can make a global currency themselves. In fact, Mark Carney had made this offer recently at Jackson Hole and I agree with him. A synthetic global currency given by the public sector. Why not?”
Libra and China are undoubtedly in the follow -up of European authorities and the euro -based digital yuan considering to start their own equivalents. Other Central Bank officials have even presented a situation where such a digital currency could prevent the euros supply of the euro supply.
Deputy Chairman of the French Central Bank, Denis Beau, said last week, “Retail CNDC”, called, “special payment structures” is an example of Libra’nın said that the tremendous “motivation”, he said. Probably, the CBDC CBDC of the Digital Yuan, which mentions the digital yuan, can distort the supply of the euro through digital payments infrastructure. This duo uses “a significant market power and is in a position that constitutes a risk for security and financial stability”.
At the end of his speech, the Central Bank of the French Bank says that CBDCs should not be feared, but will be accepted, on the contrary.
“But after all, I can say that, regardless of the latest orientations, we should not avoid trying different CBDC forms.”
