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.
