This archive report was first published on 4 November 2019.
On November 4, 2019, the Association of German banks published a paper calling for a universal digital currency across the Eurozone.
The banks argue that Facebook's Libra poses significant questions about the future of the global monetary system and its shapers, and that it is the role of policymakers and central banks to address these concerns.
They believe that a European digital currency would help fill in gaps that Libra poses, such as differing legal requirements, and prevent nations from competing with private currencies, which they argue endangers sovereignty.
According to the Association, 'the provision of crypto-based digital money must not, therefore, endanger the stability of the existing monetary system.'
The proposed digital currency would be programmable, allowing automated transactions based on the terms stated by transacting parties, and would feature cryptography and tokenization technologies to make data almost impossible to hack.
The banks also suggest that Europe develops a legal classification of the currency and a uniform supervisory and regulatory framework to promote public trust.
They require that Europe set competition standards in which banks will facilitate European Payment solutions, supporting a uniform, European approach and taking into account changes in the international competitive environment.
