Fabio Panetta, a director of the European Central Bank (ECB), confirmed that the digital euro will not be programmable money. In other words, the central bank digital currency (CBDC) will not include restrictions on how it can be used. Users can make conditional payments – a payment is only made if an event happens, but that is within the user’s control. Panetta was speaking during a European Parliament presentation today.
Panetta said, “Let me be clear: the digital euro would never be programmable money. The ECB would not set any limitations on where, when or to whom people can pay with a digital euro. That would be tantamount to a voucher. And central banks issue money, not vouchers.” In contrast, other governments such as Singapore and Brazil are exploring programmable money, especially for government-subsidized programs.
Last week the Eurogroup, made up of the Eurozone finance ministers, stated that they don’t want to see a programmable digital euro with any restriction on its usage.
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