The ECB is eyeing a launch of digital Euro as the COVID-19 crisis pushes on to ensure that stimulus cash reaches citizens fast. Previously, crypto was mentioned here
Twitter user and XRP community member ‘XRPcryptowolf’ has shared an interesting document, which states that as the COVID-19 pandemic crisis continues, the ECB is considering launching a digital Euro since it is difficult to print the large number of banknotes fast enough for the planned economic stimulus.
Previously, the former chief of the IMF, Christine Lagarde, mentioned cryptocurrencies when talking about the future of the monetary system, saying that crypto was shaking the industry.
‘Assessing the case for issuing a digital Euro’
In a blog post, ECB Executive Board member, Fabio Panetta, says that due to the continuation of the global spread of the coronavirus and its impact on the economies of the countries hit by it, the ECB is considering the idea of introducing a digital form of the Euro.
As is clear from the post, the ECB is now weighing the pros and cons of the decision and exploring possible avenues for launching a digital form of EUR in order to help citizens get stimulus cash fast enough.
According to the article, the ECB is now allowing banks to get more liquidity from the ECB in order to provide extra loans for citizens.
The printing of the extra amount of cash and the possible bottlenecks in issuing and spreading it are also being looked at.
“possible bottlenecks in printing – including the availability of raw materials – and processing banknotes for circulation are being swiftly addressed, at the same time ensuring that all necessary health and safety precautions are observed. Measures are also being taken to address problems in the transportation and processing of banknotes caused by staff being confined to their homes.”
Christine Lagarde on cryptocurrencies
Previously, during her tenure as the chief of the IMF, Christin Lagarde mentioned cryptocurrencies on several occasions as something that is shaking the current banking system. Last year, Lagarde told CNBC:
“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system.”
Back then, the IMF and ECB first began talking about introducing a CBDC or a digital Euro. The author of the blog post also discusses this.
Many crypto enthusiasts, especially XRP fans, were led to believe that the EU may adopt XRP in the future due to several mentiions of Ripple by the IMF.