Bundesbank rules out the possibility of issuing government cryptocurrency in the Eurozone
Member of the Board of Directors of the Bundesbank Karl Ludwig Thiele announced the impossibility of issuing an official digital currency in the Eurozone and warned investors about the losses they may incur by investing their money in cryptocurrencies such as bitcoin.
“The possibility of issuing a digital analogue of traditional money at the central bank level is not currently being considered,” he said in an interview with German magazine Euro am Sonntag this Saturday..
The issue of digital analogs of fiat currencies on the blockchain has been raised several times. For example, the People’s Bank of China previously stated that it was interested in such an opportunity, and ECB board member Yves Mersch proposed to create a European digital currency that would surpass Bitcoin in its characteristics and could replace it..
However, Thiele sees risks in cryptocurrencies, not opportunities..
“We are seeing a rapid rise in prices, along with which there is a risk of rapid losses,” he said..
The Bank for International Settlements said in September that it is too early to talk about the possibility of issuing digital currencies at the level of central banks, since at the moment they are not able to assess all the risks, and the technology itself is just beginning to develop.
At the same time, Estonia continues to develop the Estcoin digital currency intended for participants in the e-Residency e-citizenship program. The head of the initiative, Caspar Corjus, claims that Estcoin will not be a currency competing with the euro, but a “crypto token”, which means that it will not violate the provisions in force in the Eurozone, which were previously reminded by ECB President Mario Draghi.