The transition to digital currencies continues at a rapid pace and has been accelerated by Covid-19. As the economy moves towards a greater degree of digitalisation, a retail central bank digital currency could prove important in safeguarding central bank money as well as protecting the interest of consumers and vendors online.
The main topics of discussion for this panel include the unbundling of financial services and the impact on commercial banks, the European Central Bank’s balance sheet implications under a two-tier model, the role of central banks in supporting digital evolution and how a programmable euro could safeguard the European Union’s technological competitiveness. The need for a digital euro, the growing role of fintech and the potential division of labour under a two-tier retail model also come under consideration.
This podcast is taken from the virtual conference ‘European payments and digital assets: promoting sovereignty and integration through digitalisation’. Catch up here.