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.
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
RSS