The way to defeat Bitcoin attractiveness
Yves Mersch, a member of the Executive Board the European Central Bank, said on Thursday that banks should accelerate the introduction of instant payments to counter the attraction of cryptocurrencies like Bitcoin.
Banks need to implement instant payments as soon as possible and provide an alternative narrative to the ongoing public debate on the alleged innovation brought by virtual currency schemes.
Member of the Executive Board, the European Central Bank
The growing interest of central banks
Cryptocurrencies have gained relevance in the financial debate and some central banks such as Sweden’s Riksbank and the Bank of England intend to introduce their own digital currency.
According to Yves Mersch, the ECB is interested in experiment with cash on different digital technologies, but it does not see scope for implementation of such technology.
Bundesbank board member Carl-Ludwig Thiele agrees with Mersch opinion, saying that a digital currency such as Sweden eKrona could not be introduced in Germany, where cash payments are still prevalent.
Despite the progress of adoption, cryptocurrencies are still a source of worry for central bankers because they threaten their control of the banking system and money supply, which could undermine the monetary policies they use to manage inflation.