HELSINKI (Reuters) – A possible digital euro currency being studied by the European Central Bank could have multiple benefits, such as facilitating cross-border payments and providing a digital currency anchor, Finnish European Central Bank policymaker Olli Rehn said on Tuesday. point.
Wren said in a speech at the University of California on Wednesday that the investigation phase of the digital euro is expected to end in October 2023.
The ECB will then decide whether to start building a digital euro, Rehn said.
He believes that the idea of introducing a central bank digital currency has several possible benefits, such as expanding the availability of central bank money to only include payments between ordinary people through transactions between banks.
“A digital euro will provide people with additional choices about how to pay and make it easier to pay in an increasingly digital economy,” Wren said.
He said the limitations of existing private crypto assets are “structural” because of their price volatility and vulnerability to cyber risks.
“A digitally native form of safe central bank money could provide a neutral trusted settlement layer in the financial system of the future,” Wren said, speaking with Fed Deputy Chairman Lyle Brainard echoed recent comments.
In June, the Federal Reserve ended a four-month public consultation period soliciting comments on the idea of introducing a digital dollar, with Fed Chairman Jerome Powell expressing support.
