Fabio Panetta, managing member of the ECB, named the digital euro as one of the bank’s four priorities.
According to Panetta, the digital euro will be essential to meet consumer demand and maintain Europe’s sovereignty.
He praised the proposed Bitcoin Bank as a „simple, cost-free, risk-free and reliable“ pan-Eurozone payment method.
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Fabio Panetta, member of the board of directors of the European Central Bank (ECB), hailed the digital euro project as „a simple, cost-free, risk-free and reliable digital payment method“ that would be universally accepted in the area euro. Speaking in Frankfurt on October 22, Panetta singled out the digital euro as one of the four key strategies the ECB will adopt going forward.
These strategies, which he says respond to the changing landscape of payments in Europe include the continuous provision of cash, the development of the pan-European retail payments infrastructure, the uniform oversight of electronic payments technology and the digital euro.
(Wire) Central banks are adapting their policies to ensure payments remain efficient and inclusive, said Fabio Panetta, board member. Authorities must be ready to respond to the ongoing transformation of European payments
European Central Bank moves towards CBDC adoption
Panetta made the comments during an opening speech at the ECB conference titled “A New Horizon for Pan-European Payments and the Digital Euro”.
Giving an overview of the current transition of digital payments in Europe, Panetta revealed that cash transactions have grown from 54% of total transaction value in 2016 to 48% in 2019.
He also revealed that during the same period, cashless transactions have increased from 19% to 24% in volume and from 39% to 41% in value. These changes, he said, are part of a growing body of evidence that suggests Europe needs a new payment strategy for the future, cost-free and risk-free for consumers.
In his view, the growing importance of cashless transactions, driven by card payments in the wake of the COVID-19 pandemic, highlights the need for card payment systems that interact seamlessly across borders. In this context, Panetta believes that the Digital Euro, a Central Bank Digital Currency (CBDC) proposal to be issued by the ECB, will play a key role.