The European Central Bank expert says that the digital euro needed to protect financial sovereignty in Europe
Europe needs to embrace a Digital version It is its currency (or digital euro) to stand strongly against the high popularity of Stablecoins and the wide use of the US payment systems.
This is the message from Philip Lane, the European Central Bank’s chief economist (ECB).
According to a reportLynn believes this step is vital to Europe to maintain its financial independence as the geopolitical scene becomes more fragmented. He expressed concern about the potential risks to relying on payment methods that are not subject to European control.
Fears about foreign payment systems
Lynn indicated Risk From relying on emerging payment systems outside Europe. It suggests that this accreditation can make the area vulnerable to the area.
Increased use StablecoinsAnd digital currencies that are often associated with the value of traditional currencies such as the US dollar, also represents a challenge to the situation of the euro.
Lynn believes that if Europe does not act, these options controlled by a foreign foreign may become dominant, which weakens the role of the euro in the financial system.
As of today, the market cap of cryptocurrencies stood at $2.7 trillion. Chart: TradingView
The digital euro as a safe solution?
The European Central Bank sees the issuance of a The digital euro As a way to provide a worldly safe and acceptable way to pay all Europeans.
The new currency will be controlled inside Europe, allowing the continent to further control its financial system. Thanks to its digital currency, Europe may be able to reduce payment services from abroad.
An image rendering of a digital euro. Source: Gemini Imagen.
Preserving financial autonomy in Europe
Lynn stressed that in a more attractive world, it is important for Europe to protect its financial independence. He said that the digital euro is an important step towards achieving this goal.
It will make sure that Europe has a vocal payment system free from bases or control over other countries. This step is an integral part of protecting economic sovereignty in the future.
Foreign domination stablecoin
The main reason for promoting the digital euro is to thwart Stablecoins in other currencies dominating Europe.
The European Central Bank fears that if this infection becomes very popular, they will strip the euro as its initial currency in Europe.
The digital euro will present a European solution, provided that individuals and companies in Europe continue to use and trust the euro for their business.
The European Central Bank feels that the front thinking initiative is required to defend the safety and stability of the European financial system in exchange for emerging digital payment technologies.
Distinctive image from Gemini Imagen, the tradingvief chart
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