The European Central Bank is between a rock and a hard place. Keeping up with the current rate of innovation has been a struggle. Sources close to the matter claim the ECB will accelerate its plans to issue a digital currency.
Anyone in the world can create a digital currency. Central banks all over the world are mulling the idea of doing so.
A Tough Call for the European Central Bank
Which of them will go to market first, is difficult to predict. A new draft document indicates the European Central bank may throw its name into the hat.
In the draft, the ECB is “urged” to explore this option. In the same breath, the European Central Bank needs to issue clear guidelines for cryptocurrencies.
Those guidelines would include the banning of high-risk ventures, such as Facebook’s Libra.
Albeit this is a draft document, it can be adopted by EU ministers. If that is the case, things will get very interesting in the financial sector.
It is not the first time such rumors are sparked. The European Central Bank needs to act in light of the current developments.
Issuing their own digital currency is not necessarily the best solution. However, all options need to be explored at this time.
This news comes on the heels of a similar approach by China. The Chinese government indicated its digital currency may launch as early as Q1 2020.
The rest of the world needs to be prepared for such a course of action. For now, the ball is in the camp of the European Central Bank.