ECB’s Weidmann wants digital euro to start small

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FILE PHOTO: German Bundesbank President Jens Weidmann presents the annual 2018 report in Frankfurt, Germany, February 27, 2019. REUTERS/Kai Pfaffenbach/File Picture/File Picture

FRANKFURT, Sept 14 (Reuters) – A digital euro, at the moment underneath design by the European Central Financial institution, ought to have a restricted position initially because it may disrupt the financial institution sector and overly lengthen the position of central banking, Bundesbank President Jens Weidmann mentioned on Tuesday.

“A gradual method may make sense given the dangers concerned – meaning a digital euro with a particular set of options and the choice so as to add additional functionalities later,” Weidmann instructed a convention.

The ECB gave the digital euro a inexperienced mild earlier this summer time however the precise launch of the foreign money may nonetheless be round 5 years away.

Amongst his key issues, Weidmann argued that in occasions of disaster, customers may rush to transform their financial institution deposits to central financial institution cash, destabilising the monetary system as they withdraw a key supply of funding.

Reporting by Balazs Koranyi
Enhancing by Francesco Canepa


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