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.
With an approval rating of just two percent, Peruvian President Dina Boluarte might be the world’s most unpopular leader, according to pollsters. Protests greeted her rise to power 29 months ago, and have marked her entire term — joined by assorted scandals, investigations, controversies and a surge in gang violence. The 63-year-old is the target of a dozen probes, including for her alleged failure to declare gifts of luxury jewels and watches, a scandal inevitably dubbed “Rolexgate.” She is also under the microscope for a two-week undeclared absence for nose surgery — which she insists was medical, not cosmetic — and is
GROWING CONCERN: Some senior Trump administration officials opposed the UAE expansion over fears that another TSMC project could jeopardize its US investment Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is evaluating building an advanced production facility in the United Arab Emirates (UAE) and has discussed the possibility with officials in US President Donald Trump’s administration, people familiar with the matter said, in a potentially major bet on the Middle East that would only come to fruition with Washington’s approval. The company has had multiple meetings in the past few months with US Special Envoy to the Middle East Steve Witkoff and officials from MGX, an influential investment vehicle overseen by the UAE president’s brother, the people said. The conversations are a continuation of talks that
CAUTIOUS RECOVERY: While the manufacturing sector returned to growth amid the US-China trade truce, firms remain wary as uncertainty clouds the outlook, the CIER said The local manufacturing sector returned to expansion last month, as the official purchasing managers’ index (PMI) rose 2.1 points to 51.0, driven by a temporary easing in US-China trade tensions, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The PMI gauges the health of the manufacturing industry, with readings above 50 indicating expansion and those below 50 signaling contraction. “Firms are not as pessimistic as they were in April, but they remain far from optimistic,” CIER president Lien Hsien-ming (連賢明) said at a news conference. The full impact of US tariff decisions is unlikely to become clear until later this month
Nintendo Co hopes to match the runaway success of the Switch when its leveled-up new console hits shelves on Thursday, with strong early sales expected despite the gadget’s high price. Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since launching in 2017 — making it the third-best-selling video game console of all time. However, despite buzz among fans and robust demand for pre-orders, headwinds for Nintendo include uncertainty over US trade tariffs and whether enough people are willing to shell out. The Switch 2 “is priced relatively high”
RSS