Crypto kryptonite’: A digital euro would be dual threat to banks and fintechs, a critical new report warns

Europe’s banks, already facing a potential tidal wave of bad loans stemming from the COVID pandemic, could face a new threat to their viability from an unexpected quarter: The European Central Bank’s proposals to launch a digital euro.

The ECB, which sets monetary policy for 340 million people in the 19-nation euro zone, has dangled the prospect of launching a digital euro, which it saidwould be “an electronic form of central bank money accessible to all citizens and firms.”

The ECB says its proposal is all about creating a free, safe and trusted way to make payments in an increasingly digital world where the pandemic is hastening the decline of cash.

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