Yesterday European Central Bank (ECB) Directors Fabio Panetta and Ulrich Bindseil published a blog post defending the motivations behind a digital Euro.
Two weeks ago, we reported on a Commerzbank podcast that asserted that the real motivation behind introducing a central bank digital currency (CBDC) would be a desire by the ECB to extend its influence. Hence the fact that the ECB blog post was initially published in the Frankfurter Allgemeine Zeitung may not be a coincidence.
In the blog post, the ECB directors note that a decision has not yet been made to proceed with a digital euro. They hope to head off “misconceptions” that the aim was to abolish cash and impose negative interest rates. And the blog post states there is no desire to displace commercial bank intermediation.
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