Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank, during the China Europe Finance Summit has expressed an opinion that the launch of a central bank digital currency (CBDC) is a political decision, rather than a technical one.
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Balz points out that central banks can offer their own version of stablecoin only if there is a proper regulation and supervision:
"I believe that it is in the interest of the global central bank community that new payment arrangements, like stable coins, with potentially global reach should only be offered if appropriately regulated and supervised."
German central bank, according to Balz, is also working on alternative solutions that could assist in overcoming "existing pain points," reap the benefits of digitalization and support new payment use cases without introducing CBDC.
"The main question to be asked is: under what conditions could the introduction of CBDC for the general public, or a digital euro, become preferable?," Balz added.
Earlier, German Finance Minister Olaf Scholz said that the country will speed up development of regulatory framework for cryptocurrencies in the European Union (EU).
Previously in September, the European Central Bank (ECB) said that stablecoins that entail a liability on an identifiable entity should be subject "to existing regulatory standards."
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