Germany’s central bank executive Burkhard Balz emphasized the digital euro’s role in safeguarding Europe’s financial autonomy and resilience.
In an interview with the German newspaper Süddeutsche Zeitung last week, Burkhard Balz, a member of the executive board of Germany’s central bank, talked about how the digital euro helps protect Europe’s financial independence.
Balz said that the plan was very important for making sure that Europe would be able to handle a world that is becoming more digital and competitive.
He said that the digital euro is like paper money in that it can be used in place of cash, even though it appears in digital form. This was another way of saying that cash will not be gone forever.
Balz said, “As long as people want to have cash, they will be able to pay with cash and have access to cash.” This shows that both types of payment can live together.
Effect of Digital Euro to china and US
The member of the central bank’s executive board was worried about how much Europe relied on non-European payment providers like PayPal and Mastercard, pointing out the risks that come with this. He stressed how important it was for Europe to build its own payment system by saying:
Dealing with the USA and China is going to be rough. We need to buckle up.
This concern has grown with China’s progress in developing its central bank digital currency (CBDC). “The Chinese are among the most advanced in the world in terms of developing their own central bank digital currency. They could introduce the digital currency, but currently have problems with the financial stability of the system and economic development,” Balz noted, recognizing the potential competitive edge China could gain while acknowledging their current challenges.
Because of these changes happening around the world, Balz said again that Europe needs to take control of its banking systems right away. He said that Chinese payment apps like Alipay were used at public events in Germany and warned that this could become more common if Europe doesn’t come up with options.
