Stating that they need the digital euro for two reasons, Panetta said, “We see that people are shopping more online and if this trend continues, the use of cash will decrease. Our task is to provide a sovereign and secure currency. Second, we cannot allow the European retail market to be dominated by a few foreign actors. “Our monetary and financial independence is in jeopardy without Europe‘s place in digital payment solutions.”
“We Will Avoid Risks”
Emphasizing that the digital euro will provide its users with a completely safe, risk-free, and completely liquid payment instrument, Panetta said that unless there is a regulation, large investment inflows may occur in such instruments and this may pose a risk to financial stability.
“But we will avoid these risks,” said Panetta, emphasizing that there are two ways to do this, “We will either limit the possession of individual digital euros, for example, it will be prohibited to keep more than 3 thousand euros. Or we will apply cuts and commissions to the money held above a certain amount,” he said.
“This Would Be The Earliest Date”
When asked about when the digital euro will be available, Panetta said, “We started our discussions on the subject to reach the target within 5 years.”
Stating that they do not want to rush and this is not a race, Panetta said, “We cannot take the risk of issuing a digital currency that will not work for users or create instability.