The European Central Bank (ECB) will not issue its digital euro soon as it does not make sense for the bank to issue the currency in response to the threat of Libra, according to ECB’s Policy Maker Jens Weidmann.
Weidmann said Libra consists of a basket of global currencies, determined by Libra’s members.
“We have a stable currency with the euro, which has proven itself over the previous decades,” Weidman said. “I don’t believe in always calling for the state right away. In a market economy, it is first up to the company to develop an appropriate offer for customer requests. Competition gives legs to market participants.”
Gregory Klumov, founder and CEO of Stasis, said, the bank sticks to its mandate in order to make sure of the euro stability. He added that issuing the digital euro will not surprise most European consumers as credit cards are prevalent. “Payment institutions process billions without a single banknote changing hands; and large banknotes, like the 500 euro note, have been withdrawn from circulation.”
Klumov said such a service receives growing demand from corporations that are tired of paying fees for cross border payments within companies.
Switzerland’s President Ueli Maurer earlier said Facebook’s cryptocurrency Libra has failed and should be amended before being submitted for regulator approval, according to Reuters.
Ayman Al-Banna, senior advisor at MAG Consulting, said the cryptocurrency should be transferred into a “Manage Stable Coin” and this would not help Facebook achieve its plan of introducing a global cryptocurrency.