The European Central Bank (ECB) “should be prepared” to possibly launch a digital currency, ECB President Christine Lagarde said yesterday, adding that the public would be asked to weigh in on the issue.
The Frankfurt, Germany-based bank is to carry out a series of experiments with a digital euro over the next six months and launch a three-month public consultation from Oct. 12.
A decision on whether to move ahead with a virtual currency project is expected in about the middle next year, it said.
Photo: Reuters
“Our role is to secure trust in money... We should be prepared to issue a digital euro, should the need arise,” Lagarde said in a statement.
This digital currency would “complement cash, not replace it,” the statement said.
The move comes as people increasingly pivot toward cashless payments, and the ECB is wary of falling behind so-called cryptocurrencies issued by private players like bitcoin and Facebook’s yet-to-be-launched Libra.
A digital currency would allow individuals as well as companies to have deposits directly with a central bank, potentially safer than with commercial banks, or cash that could be stolen.
The ECB’s deliberations echo those of the US Federal Reserve, which has been researching a digital dollar.
The People’s Bank of China in April started experimenting with digital currency in four cities.
Proponents of cryptocurrencies say they allow for faster and cheaper payments, especially across borders, as they cut out the staff, administration and the high costs needed in traditional banking and investment.
Governments in Europe have insisted that any digital currency would require careful supervision.
“A digital euro would support Europe’s drive towards continued innovation. It would also contribute to its financial sovereignty and strengthen the international role of the euro,” ECB executive board member Fabio Panetta said.
Many hurdles remain, including concerns about privacy and the impact on traditional banking and financial stability, Panetta said.
However, “a properly designed digital euro could address these risks,” he said.
The COVID-19 pandemic has accelerated the shift toward electronic payments, as people avoid notes and coins over fears that they might spread the novel coronavirus.
The ECB applied to trademark the term “digital euro” late last month, Bloomberg News reported.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
ROUGH RECORDS: Bonds in Japan, as well is in New Zealand, Australia and the US, are seeing the effects of a nervy market as stock exchanges across Asia edge down A deepening slump in Japanese government bonds added fuel to the selloff in global debt markets as rising oil prices stoked inflation fears and pushed yields to multi-decade highs. Japan’s 30-year yield yesterday surged as much as 20 basis points to the highest level since the tenor’s debut in 1999, before paring some of the move. Shorter-maturity Japanese debt was also under pressure, underscored by weak demand at a sale of five-year notes that offered a record-high coupon of 2 percent. Concerns over inflation and government spending rippling through markets including the US, Australia and New Zealand are being amplified in Japan,
The US has cleared about 10 Chinese firms to buy Nvidia Corp’s second-most powerful artificial intelligence (AI) chip, the H200, but not a single delivery has been made so far, three people familiar with the matter said, leaving a major technology deal in limbo as chief executive officer Jensen Huang (黃仁勳) seeks a breakthrough in China this week. Huang, who was not initially listed in a White House delegation to Beijing, joined the trip after an invitation from US President Donald Trump, a source said. Trump picked him up in Alaska en route to a summit with Chinese President Xi Jinping
Wall Street is licking its chops over an unprecedented slate of massive initial public offerings (IPOs) set to arrive in the coming months, beginning with Elon Musk’s Space Exploration Technologies Corp (SpaceX) next month. That is expected to be followed by artificial intelligence (AI) rivals OpenAI and Anthropic PBC. The trio of mega listings, each eyeing valuations around US$1 trillion or more, constitutes a heady period of elevated risk and reward. SpaceX is targeting an IPO that would raise up to US$80 billion — about double the funds generated from all IPOs last year. OpenAI and Anthropic are eyeing IPOs raising US$60 billion. “We’re
RSS