Monerium Thinks Route To Digital Euro Is Simpler Than The European Central Bank
Monerium Thinks Route To Digital Euro Is Simpler Than The European Central Bank
October 15, 2020
Monerium Thinks Route To Digital Euro Is Simpler Than The European Central Bank
Monerium Thinks Route To Digital Euro Is Simpler Than The European Central Bank
October 15, 2020

Monerium, the ConsenSys-backed e-money issuer, thinks that the route to a digital euro is simpler than the European Central Bank suggests.

It has been reported that the fintech, which focuses on bridging fiat money with blockchains by issuing programmable digital cash, published a response to the ECB’s recent public consultation on the digital euro on October 13.

However, in summer 2019, Monerium had become the first company worldwide to receive a license from Icelandic regulators as part of a new European regulatory framework for e-money services across the European Economic Area.

It provided fiat payment services using the Ethereum blockchain and later partnered with blockchain protocol Algorand. In its response to the ECB, Monerium argues that all Europe needs to do is to recognize it already has “a proven form of digital euro.” 

The report said that in 2000, the European Commission had described e-money as a “digital alternative to cash,” issuing a directive that defined it as “technically neutral,” an “electronic surrogate for coins and banknotes.

ALSO READ :  Global Investment In Blockchain In Energy Markets Is Set To Reach $34.7 Billion By 2025

Monerium claims: 

“The only thing that the ECB needs to do to give e-money comparable status to physical cash is to grant e-money issuers access to the ECB’s reserves.”

According to the report, embracing existing e-money issuers is preferable to the ECB directly issuing digital currency to households and non-financial corporations, in Monerium’s view. Direct issuance would entail a radical overhaul of the existing system, in which the central bank chiefly interacts with regulated financial institutions like commercial banks.

Likewise, Monerium points to a report from two International Monetary Fund economists, which proposed that non-bank providers could issue digital money with the central bank’s backing in order to roll out a synthetic central bank digital currency (sCBDC). 

Europe’s existing e-money framework, in Monerium’s view, is already fit for the IMF’s key criteria for a stable digital currency.

To move from e-money to an sCBDC, following the IMF’s lead, would require the central bank to grant e-money issuers access to ECB reserves:

“Such access would be consistent with preserving a ‘level playing field between electronic money institutions and credit institutions’ as stipulated by the e-money directive.” 

The ECB has made it clear that it will come to a decision on whether or not to launch a digital euro project towards the middle of 2021.

ALSO READ : to Shutdown for Financial Reasons

Thus, the central bank considers a CBDC to be a matter of “strategic autonomy” for the Eurozone, at a time when stablecoins from private and overseas actors threaten to “undermine financial stability and monetary sovereignty in the euro area.”

Source: Cointelegraph | Image: Bitfinex


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.