Addressing enquiry by MEP Jonas Fernandez, Draghi aforementioned “substantial development” was still required within the underlying technology behind digital currencies before the financial bank would think about using them.
Adding further he said:
“The ECB along with the Euro system presently don’t have any plans to issue any national crypto currency. Nonetheless, we are fastidiously analysing the potential consequences of the supply such a currency as a complement to cash.”
Explaining why no plans were afoot at the ECB, Draghi dragged attention to some factors.
“…The technologies that might doubtless be accustomed to issue a new crypto currency […] haven’t nevertheless been totally tested and need substantial any development before they might be employed in a financial organization context,” he told Fernández, adding:
“With relevance the financial organization administering individual accounts for households and corporations, this might imply that the financial organization would enter into competition for retail deposits with the banking sector and result in doubtless substantial operational prices and risks.”
He mentioned further that there was at this time “no concrete need” to issue a further currency among the eurozone, stating demand for money banknotes “continues to grow” within the EU28.
Draghi continues the cautious stance the 28-member bloc has historically endured bank-issued cryptocurrency, in distinction to moves by countries like Russia and China.
Even earlier this year, a joint report from the ECB and Bank for International Settlements (BIS) highlighted “side effects” of a possible launch of such a currency, conjointly considering the requirement for additional analysis beforehand.