The Association of German Banks (Bankenverband) has published a report that states that “the economy needs a programmable digital euro.” The association is made up of over 200 private commercial banks and eleven member associations.
The Bankenverband report states that the responsibility of the monetary system rests with the sovereign national states. Therefore, any currency provided by banks or private companies must fall within a system determined by the state.
“Anything else would eventually lead to chaos and instability,” he notes, a not too subtle allusion to the Libra project. In addition, banks are calling on national and international policymakers to act responsibly and to ensure that competition with private currencies should not be allowed.
A digital euro and a European payment platform
Banks support the creation of a digital euro based on cryptography, which would work on a pan-European payment platform:
“The user of a digital euro must be clearly identifiable. This requires a European standard or, rather, a global standard of identity. With each form of digital currency, customers should be identified using a standard as strict as the one that banks and other obligated entities must apply within the current legal framework that seeks to combat money laundering and terrorist financing. “
According to Bankenverband, a competitive payment system can only be based on a common standard and a common currency:
“In order to maintain Europe’s competitiveness, meet customer needs and reduce transaction costs, the introduction of a euro-based programmable digital currency should be considered.”
German Federal Parliament: Stable cryptocurrencies are a threat to the existing monetary system
German Finance Minister Olaf Scholz recently supported the idea of launching a digital euro currency. He argued that such a digital payment system would be beneficial for Europe. And that “we should not lose ground in favor of China, Russia, the US or private suppliers.”
At the same time, the German Federal Parliament recently issued a statement stating:
“We need to make sure that stable cryptocurrencies will not become an alternative to state currencies, as they could compromise the existing monetary system.”