Member of the management Board of the European Central Bank (ECB) Yves Mersch (Yves Mersch) said that to counter the rising popularity of crypto-currencies commercial banks need to develop a faster payment system.
«Banks need to incorporate instant payments and to provide alternatives to anticipated innovations that have a virtual currency,» said Mersch.
At the moment the spread of cryptocurrency in the retail market slightly. However, Central banks mostly follow the development of the cryptocurrency market and try to assess the associated risks.
Private digital currencies are a source of concern for Central banks because they threaten their control over the banking system and the money supply, which could undermine monetary policy, which they use to control inflation.
That is why some Central banks like Sweden’s Riksbank and the Bank of England, consider the advantages of introducing its own digital currency. In several other countries, including Russia, USA, China, Kazakhstan, Uruguay and Lebanon, there were calls or voiced plans to release a state of digital currencies.
According to Yves Mersch, the ECB also experimenting with money for new technology.
«We are also experimenting with money on a variety of digital technologies. Other adventurous applications more destructive nature is simply not enough reliable,» he said.
His comments were supported by Bundesbank Board member Carl-Ludwig Thiele, who said in Berlin that a digital currency such as proposed by Sweden eKrona, cannot be introduced in Germany, where cash payments are still common.
«The problem of digital money from the Central Bank, in our opinion, is not a realistic option in the foreseeable future,» said Thiel at the event.
Earlier, ECB President Mario Draghi (Mario Draghi) spoke strongly against the introduction of national digital currencies by Eurozone countries.