The European Central Bank puts the digital euro in response to the Trump campaign for encrypted currencies

Frankfurt (Reuters) – The European Central Bank of the Central Bank, said on Friday that the euro zone banks need a digital euro to respond to the efforts of US President Donald Trump to promote stable currencies, a type of cryptocurrency usually associated with US dollars, said Frankfurt.

“It will enhance the development and growth of legitimate and legitimate currencies backed by dollars around the world” as part of a broader strategy of encrypted currencies drawn on an executive order issued on Thursday.

This would help attract more customers away from banks and enhance the argument of the European Central Bank to launch its private digital currency in response.

“I think the basic word here (on Trump’s executive) is the global word,” Cibuloni said at a conference in Frankfurt. “As you all know, this solution increases the non -mediation of banks because they lose the fees and lose customers … and for this reason we need digital euro.”

The stable currencies operate similar to the financial market boxes in that they provide exposure to short -term interest rates in the official currency – almost the US dollar.

In contrast, the digital euro will be a wallet on the Internet guaranteed by the European Central Bank, but it is managed by companies such as banks.

People, even those who do not have a bank account, will allow payments. The roof of possession is likely to be determined by a few thousand euros and will not be compensated.

The banks expressed their concerns that the digital euro will empty their treasures, as customers convert some of their money into a safe portfolio guaranteed by the European Central Bank.

The central bank in the euro area is currently experimenting with how the digital euro works in practice. But it will not make a final decision regarding its launch until after European legislators agreed to legislate this matter.

Trump’s executive order on the Federal Reserve is also prohibited to issue the Central Bank’s digital currency (CBDC).

Nigeria, Jamaica and the Bahamas have already launched digital currencies, and 44 other countries, including Russia, China, Australia and Brazil, are operating experimental programs, according to the Atlantic Council Research Center.

(Written by Francesco Kaiba, edited by Mark Heinrich)