Europe mulls digital euro as China pushes ahead with own electronic currency
- The European Central Bank (ECB) is the latest global monetary authority to consider adopting a digital currency
- China appears to be the clear leader in the field, with pilot tests under way in several cities
The European Central Bank (ECB) has moved a step closer to pursuing a digital euro, becoming the latest global central bank to seriously consider following China’s lead in creating a digital currency.
But other central banks are starting to explore the idea, spurred on in part by the attention the Chinese project is getting and the nation‘s advanced system of electronic payments through mobile apps.
The ECB outlined the potential benefits and pitfalls of a digital euro in a report released late last week, saying it must be designed to avoid “adverse effects on monetary policy and financial stability”.
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Key risks include the impact on monetary policy, financial stability, the safety and efficiency of retail payments, cross-border flows, cybersecurity and legal and privacy issues, the ECB said.