European Central Bank Has No Plans To Issue Cryptocurrency, Says ECB President Mario Draghibr>
European Central Bank (ECB) President Mario Draghi said that the institution is not issuing a digital currency any time soon.
In a letter to a member of the European Parliament, Drghi said the ECB has no plan to issue a digital currency because blockchain technology is still fragile and the use of physical cash is still high in the euro zone.
“The ECB and the Eurosystem currently have no plans to issue a central bank digital currency,” Drghi said. “There are several reasons why we do not consider issuing a central bank digital currency to be a concrete option for the near future. First, the technologies which could potentially be used to issue a central bank digital currency, such as distributed ledgers, have not yet been thoroughly tested and require substantial further development before they could be used in a central bank context. In addition, current conditions do not indicate that there is a concrete need to issue a central bank digital currency in the euro area. The demand for euro banknotes continues to grow, and cash remains a popular means of payment.”
According to an ECB research, in 2016, around 79 percent of all payments at points of sale (POS) were made with cash, 19 percent with cards and 2 percent with other payment instruments. The report said that despite numerous articles claiming a cashless society is imminent, it appears that the use of cash at POS is still robust in most euro area countries.
“The results put the use of cash relative to non-cash payment methods by consumers at POS into perspective, and indicate that the use of cash at POS is still widespread in most euro area countries,” the report said. “This seems to challenge the perception that cash is rapidly being replaced by cashless means of payment.”