Olli Rehn, Finnish ECB policymaker, said that a possible digital euro currency is being studied by the European Central Bank. This could provide several benefits, including cross-border payments, and a digital monetary anchor.
Rehn stated that the investigation phase of the digital euro will be completed in October 2023 in a speech he delivered at the University of California. This speech was published Wednesday.
Rehn stated that the ECB would decide whether or not to build a digital currency.
He saw many benefits in the idea of creating a digital currency central bank, including the expansion of central bank money to allow payments between ordinary people and transactions between banks.
Rehn stated that a digital euro would allow people to choose how they pay, and make it more convenient to do so in an increasingly digital world.
He stated that the limitations of existing private crypto-assets were “structural”, due in part to their volatility and vulnerability to cyber risk.
Rehn stated that a digital native version of safe central bank money could increase stability and provide the neutral trusted settlement layer for the future financial system, echoing comments made by Lael Brainard, U.S. Federal Reserve Vice Chairman.
The Fed completed a four-month public consultation period in June to get opinions from the public about the idea of introducing digital dollars. Fed Chair Jerome Powell spoke in favor of it.
