How the Fed and ECB will let banks go bust in a new monetary reset
CBDC can be accessed offline – ECB
Digital money of central banks can possibly be used outside the network.
A new type of digital money will also require new legal regulation..
Over 60 central banks are already working hard on their CBDCs.
Eurozone Central Bank Says CBDC Bills and Coins May Become a Done by New Financial Instrument – Central Banks Digital Currency (CBDC).
More may possibly be accessed offline.
The European Union’s financial institution, the European Central Bank (ECB), believes that in the event of an official issuance of the central bank digital currency (CBDC), such an asset may need to be available both online and offline..
The ECB announced this in an official announcement. [ECB]
The ECB also noted that the creation of a CBDC would require the development of a solid legal framework, in accordance with EU legislation..
In particular, the European central bank is still deciding whether the CBDC can have the same legal tender status as banknotes and coins..
“In practice, legal tender status implies that the CBDC would have to be used anywhere and under any conditions, perhaps even offline,” the ECB said..
New realities new laws
In the event that CBDCs still do not receive legal tender status, then, according to the ECB, it is necessary to clarify the legal basis, as well as the relationship between CBDC and euro banknotes, as well as coins, as well as the currency exchange process.
At the same time, the financial institution does not deny the possibility of a decentralized emission of CBDCs for retail in order to ensure anonymity..
“We are currently investigating legal issues arising from the potential use of intermediaries to facilitate the circulation of CBDCs as well as processing transactions with CBDCs,” the ECB said..
The European Central Bank noted that more than 60 central banks around the world are already working on their own CBDC.
The reason for such active interest in CBDC may be none other than the rapidly spreading coronavirus infection.
Earlier, Deutsche Bank, the largest financial conglomerate in Germany in terms of the number of employees and the amount of assets, said the COVID-19 pandemic is accelerating the development of CBDC, as the use of cash poses a threat of infection.
Also BeInCrypto editors wrote, that the French central bank has called for a digital euro experiment aimed at interbank settlements.
What do you think? Will CBDCs have anonymity and autonomy from the control of financial authorities?? Share your thoughts with us in comments.
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