As an analyst with a background in banking and finance, I believe that Andrea Orcel’s perspective on the digital euro is thoughtful and insightful. His emphasis on the importance of banks retaining their central role in the implementation and operation of the digital euro is crucial for ensuring stability and continuity in Europe’s financial system.
Andrea Orcel, the CEO of UniCredit, expressed his approval for a digital euro as long as banks maintain their significant roles in its creation and management.
According to UniCredit CEO Andrea Orcel, speaking at a Mediobanca-hosted conference as reported by Reuters, the digital euro could prove to be highly beneficial if financial intermediaries maintain their pivotal positions.
At the event, Orcel highlighted the significance of preserving banks’ pivotal role in money transactions when introducing the digital euro. He referred to the currency’s debut as a “sovereignty issue for Europe.”
The European Central Bank intends to introduce the digital euro to strengthen the Eurozone’s resilience and bolster Europe’s financial independence and monetary control. Although the rollout is predicted to still be several years in the future, debates persist regarding how banks will incorporate digital euro functionalities, potentially influencing the industry’s shifting business structures.
“The query at hand revolves around the mechanism: Will banks serve as the foundation for a digital euro, similar to their role in cash transactions? If banks are fully on board, allowing customers the choice between traditional money and its digital counterpart with a smooth transition – ‘Dear Client, you can have cash or digital currency’ – then this development would benefit Europe significantly, bringing about advancement for both the continent and the banking sector.”
Andrea Orcel
In a talk given in April, ECB Executive Board member Piero Cipollone revealed that commercial banks would manage digital euro transactions, allowing consumers to enjoy cost-free services while merchants and service providers would bear related fees. The presentation further indicated that consumer banks would collect these fees from merchant banks, but the specifics and the exact fee structure remained undisclosed.
At Money20/20, Evelien Witlox, the European Central Bank’s digital euro director, emphasized the bank’s careful approach to introducing a digital euro despite increasing demand due to dwindling cash usage and the rise of competitive currencies and digital payment methods.
If the digital euro is issued by the central bank, it will hold the same status as legal tender for the public. This means people can utilize central bank money for their daily transactions in a digital format. Merchants providing digital payment options would be obligated to accept the digital euro, according to Witlox, thereby offering a significant advantage to citizens.
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2024-06-19 15:10