Member of the Executive Council of the European Central Bank (ECB) Fabio Panetta (Fabio Panetta) said the need to use the digital euro in the event of force majeure.
Panetta said this at the ECB conference on the development of digital payments in Europe, noting that the emergence of the latest technologies has a significant impact on the European market. Panetta named several factors under which the European Union can use the digital euro. For example, during natural and environmental disasters, when people may have difficulty using ordinary money, as well as during a pandemic, when people deliberately refuse cash. The digital euro will have to be implemented with an abundance of various systems for settlements with digital currencies. So, the PayPal payment system is already going to add support for cryptocurrencies for American users.
Panetta noted that many European organizations and individual users prefer to make cashless payments. In 2016, the total volume of settlements in cash was 79%, and in 2019 this figure dropped to 73%. The digital euro has many benefits, Panetta said. However, this poses a threat of cyber attacks and loss of user funds, as well as the risk of a decrease in the activity of commercial banks. Therefore, it is important to work out a comprehensive strategy on how best to introduce new digital products to the European market and begin to “prepare the ground” for the release of the state cryptocurrency in order to be ready for any turn of events.
Recall that earlier this month, the ECB applied for the registration of the digital euro trademark, and also published a report in which it indicated four conditions, upon the occurrence of which the digital euro will be issued.