The Association of Private Banks of Germany, which includes more than 200 financial institutions, has called for the release of digital euro. Its creation will help the EU withstand competition from the United States and China, as well as prevent possible negative consequences from the launch of Libra, bankers say.
According to the association, the new asset should operate based on a pan-European payment platform and be regulated following a single regulatory framework.
The document says that the user of the digital euro whether it is a person or a machine must be identified. This requires a European or, even better, global identification standard. It should be as strict as the one that banks and legal entities follow under the current legal framework.
The association noted that so far it has not been possible to integrate smart contracts and digital processes into the Single Euro Payments Area (SEPA), and therefore it is necessary to create an infrastructure for the implementation of new digital business models.
"The creation of a digital euro will ensure the security of the existing monetary system, while the issuance of private virtual currencies, such as Libra from Facebook, can lead to “significant economic and political conflicts,” German bankers are sure.
In addition, the digital euro will allow the EU to maintain its position in the international arena.
The association said that digital money could very soon become a reality. Europe must be competitive so that global financial architecture does not polarize between US or Chinese technology solutions.
Earlier the head of the country's Ministry of Finance Olaf Scholz said, that Germany should not lag behind other states or private companies with the issue of digital currency.
French Finance Minister Bruno Le Mer also called for the release of the digital euro.