CBDC News

Germany’s Community Banks Concerned About a Digital Euro

Germany’s community bank group has argued that Central Bank Digital Currencies (CBDCs) should only be brought into circulation by commercial banks who should be ‘appropriately compensated’ for it. It wants to see limits on the amount that may be stored by retail customers and an outright ban on businesses using it as a store of value to counter the risks of bank disintermediation. In contrast, the Association of German Banks is generally supportive of a CBDC.

The community banks say a Digital Euro will need to be a better form of cash if it is to succeed, available offline and ‘as close to anonymity as the law permits.’

The banks argue that they should not bear the costs of implementing a Digital Euro, rather they should be compensated for their contribution. The banks would like the European Central Bank (ECB) to fund the digital wallet solution currently being created by the European Payment Initiative.