Yesterday, the Association of German Banks, which is composed of a number of private banks and associations, has provided a position paper that introduces some arguments regarding the digital euro.
According to the Association, any type of currency presented by banks and private companies must be a part of the state-designated monetary system. Another approach will cause instability and chaos in the country.
The German banks address the authorities and suggest them to introduce a cryptography-based digital euro taking into account a few conditions. As the Association claims, its introduction should be followed by the establishment of common for all the nations of Europe platform.
In spite of the fact that the private German banks are fully confident that, in a digital economy, this type of electronic money will quickly become extremely important, they claim that the current system must not be jeopardized by the introduction of digital money.
Thus, banks expect policymakers representing Germany and other countries to take necessary measures in order to ensure that competition with private currencies does not start.
As mentioned earlier, a new cryptography law recently implemented in China will enter into force at the beginning of next year.