BdB: crypto-Euro must come as a Bitcoin competition

Clear edge when the Association of German banks? In a new paper, the Association demands loudly the introduction of a digital Euro as BTC-reaction.

Bank Association sees too much Power in the Bitcoin

The banking industry is not necessarily known, that she walked with open arms to the crypto world. While there are some first Attempts to form the own stable coins such as in the case of U.S. Bank JPMorgan. Other banks rely increasingly on the Blockchain as a technical base for digital Assets. Crypto-currencies like Ethereum or Litecoin are, however, many representatives of the banking industry, rather a thorn in the eye as a welcome Partner. Accordingly, unexpectedly, the publication of a new position paper comes now, in Germany, the copyright of the Association of German banks (BdB). Although this opinion expressed is not necessarily Positive in the direction of digital currencies. But at least it is a clear Position, which was not the case with many of the Statements made by the Bank in the past.

Digital Euro: a Supplement to or a replacement of cash?

The Association argues in the new paper as an Association and representatives of the private banks in the German market for the development of a digital Version of the community currency, the Euro. The so-called “crypto-Euro” should be understood as an official response to the growing importance and leadership of the Bitcoin. The BdB is the voice for a total of eleven associations, as well as more than 200 commercial banks in the private sector. The Federal government should finally decide to Act. The so-called Blockchain strategy is to lead in 2020 to digital bonds, it is not enough the representation of interests in this item. An idea of the digital Euro has been formulated in the paper also approaches. It is a programmable Version of the European currency. Paper money alone, the mountains, the risk that the monetary and financial system within Europe, first unstable, and then into the Chaos of the falls. So it States the analysis of the Association. As a basis should, in turn, serve a in the whole of Europe available platform for payments.

The industry sees the state of crypto currency rather skeptical

An essential aspect: regardless of whether it be computers, machines, company, or individual use of the digital Euro-variant should always be a transparent and unambiguous assignment is guaranteed. The starting point must be at least a “European identity standard,” the BdB-paper. Makes more sense for the authors, however, are Standards with a worldwide validity for all the partners involved. To refer to existing policies against money are, as expected, wash. The compatibility with the existing payment system in Europe, it is important to take into account. At the end there would be the necessary competitiveness – combined with lower fees for transactions. The paper also comes to the wishes and needs of the Bank customers to speak. This one must involve in addition at the development. In the criticism of the paper is the same after the release. And, among other things, because from the point of view of many experts, the note on the threat of consequences as a result of the abolition of cash remain on the sidelines.

At the end would stand as the critical vote – final of the transparent customer. Also expropriations and dramatically more influence for Central banks threaten in negative scenarios. These three hazards were well known to be the main arguments for the development of crypto-currencies such as Bitcoin. The BdB responds unquestionably to the plans of Facebook to Stablecoin Libra.

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