Central Bank will move towards creating “fully fledged” digital currencies, according to Dutch bank ING’s chief economist, Mark Cliff.

Mark adds that Facebook’s Libra is creating a wave on monetary authorities. Central banks “would have” to create the digital currencies by Facebook Libra’s 2020 launch.

“I think we’ve already got some sense of urgency amongst the policy community,” he added.

The chief economist adds that digital currencies will replace physical cash thus “move even further into negative territory with interest rates.”

He adds it will “open up a whole range of policy options,” while saying that there are “other ways to support economic activity in a future downturn.”

There are hints that suggest that Libra is in a way inducing central banks to open up their own digital currencies.

Libra wave

On the other hand, French finance minister Bruno Le Maire is planning to block Facebook Libra in the country in mid-September. The minister adds that he would discuss the creation of a “public digital currency” with “outgoing European Central Bank president Mario Draghi and Christine Lagarde, who will take over his position later this year.”

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China has been publicly highlighting the negative impacts of Libra while its central bank is on its way to create its national digital currency.

China’s central bank said it is almost ready for launch in November but then denying it has no official launch date.


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