- ECB board member Panetta believes that the digitization of the euro will greatly impact the Eurozone.
- The impact of the CBDC both in the Eurozone and the global monetary system must be carefully assessed.
Fabio Panetta, Italy’s executive member to the European Central Bank (ECB) board reckons that central bank digital currency (CBDC) will impose domestic implications for the Eurozone. Some of the areas likely to feel the impact of a digital euro include financial stability, monetary policy as well as payment systems.
In his opinion, Panetta says that it is essential that these areas be thoroughly assessed before going the digital way. In addition, the use of the CBDC outside the Eurozone would have a vivid impact on the global monetary and financial system too.
The Coronavirus pandemic has had central banks from around the world looking deeper into the research and development of CBDCs. The European Central Bank is also studying the aftermath of the virus and the role of a CBDC. It is apparent that the acceleration of the digitization plan will have a great impact on the role of the euro in the global arena.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.