Addressingenquiryby MEP Jonas Fernandez, Draghiaforementioned“substantial development” was stillrequiredwithin theunderlying technology behind digital currencies before thefinancial bankwouldthink about usingthem.
Adding further he said:
“The ECBalong with theEuro systempresentlydon’t have anyplans to issue any national crypto currency. Nonetheless,we arefastidiouslyanalysing the potential consequences of the supplysuch a currency as a complement to cash.”
Explaining why no plans were afoot at the ECB, Draghi dragged attention tosome factors.
“…The technologiesthatmightdoubtlessbeaccustomedto issue anewcrypto currency […]haven’tneverthelessbeentotallytestedand needsubstantialanydevelopment beforethey mightbeemployed inafinancial organizationcontext,” he told Fernández, adding:
“Withrelevancethefinancial organizationadministering individual accounts for householdsand corporations,this mightimply that thefinancial organizationwould enter into competition for retail deposits with the banking sector andresult indoubtlesssubstantial operationalpricesand risks.”
Hementioned furtherthat there wasat this time“no concrete need” to issuea furthercurrencyamongthe eurozone,stating demand formoneybanknotes “continues to grow”within theEU28.
Draghi continues thecautiousstance the 28-memberblochashistoricallyenduredbank-issued cryptocurrency, indistinctionto moves by countrieslikeRussia and China.
Even earlier this year, a joint report from the ECB and Bank for International Settlements (BIS) highlighted “side effects” ofa possiblelaunch of such a currency,conjointlyconsideringthe requirementforadditionalanalysis beforehand.