That outcome is ‘likely’ in the euro area, European Central Bank Executive Board member Fabio Panetta has told a panel in Helsinki on central bank digital currencies, or CBDCs. Addressing the same event, Russian central bank Governor Elvira Nabiullina concurred. She stressed the importance of fast and reliable conversion between forms of money, calling it ‘crucial for the trust of society in this money.’
Ensuring CBDCs are legally recognised as a form of payment alongside banknotes and coins could give the new form of money an edge over other types of electronic payments. It could also help allay fears of CBDCs being shunned if consumers stick with existing payment methods like credit cards and apps, or embrace newer options like stablecoins.
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