European Central Bank (ECB): “the launch of the digital euro will lead to the creation of new business models”

According to the European Central Bank (ECB), the regulator began to study the potential market consequences of the release of the digital version of the euro and the emergence of new business models.

European Central Bank (ECB) can create new business model

According to a statement by the European Central Bank (ECB) Governing Council outlining the decisions taken in the area of monetary policy, the Eurosystem continues to move towards the release of the digital euro. However, “the ECB has no intention of displacing the private sector in the provision of payment services.” ECB management describes the issue of digital euro as an opportunity for payment services:

“Moreover, regulated private intermediaries are best suited for providing front-end solutions and value-added services, as well as building new business models based on the digital euro if such an initiative is deployed.”

What these business models might look like will depend on the ultimate scale and actual use of the digital euro. In early October, the European Central Bank (ECB) published a report on the digital euro, which noted a number of important factors that will lead to the launch, including the adoption of the digital currency by central banks around the world and a reduction in the use of cash.

“The digital euro will support the public good that the euro provides to citizens: free access to simple, generally accepted, safe and reliable payment tools. It also creates certain problems, but, subject to appropriate strategies in the development of the digital euro, the Eurosystem can solve these problems, “

the European Central Bank said then.

According to the latest information, Europe’s financial regulators will explore the possibilities of a digital euro next year. The digital euro will complement, not replace, fiat currency.