The Association of German Banks (BV) has published a paper on the potential and prerequisites of a programmable Euro, as a European answer to Facebook’s Libra. Programmable Euro has to be introduced before the other currencies. Without a programmable Euro issued by the ECB, Europe could fall behind its international competitors. In addition, there could be increasing dependence on non-European money issuers.

Although the demand for programmable money is likely to increase, Central Bank Digital Currency (CBDC) will initially rarely be necessary from a user’s perspective. Users’ needs are likely to be satisfied by private-sector solutions.

Nevertheless, European institutions will have to consider the potential impact on competitiveness of the introduction of either digital forms of other currencies or Libra.

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