The rise of alternative payment and store of value systems, the rapid migration of payments away from cash in the time of COVID-19 and the persistence of so many unbanked people worldwide is forcing the European legislator to rethink our financial infrastructure and payment system to stay on track with developments. The ongoing international discussion around Central Bank Digital Currencies (CBDC) initially began with Facebook's plan to launch a new global payment system and financial infrastructure supported by its Libra stablecoin. In Europe, this resulted in a recently published report by the European Central Bank exploring the risks and opportunities of a digital euro. This currency would be offered in a digital form but not necessarily as a crypto coin and would complement but not replace the current offering of cash. Find the full report here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
