ING: full-fledged digital currencies of central banks will appear in 2-3 years

The chief economist of the Dutch bank ING Mark Cliffmeit expressed the opinion that the central banks of various countries will launch full-featured digital currencies (CBDC) only after two to three years.

According to him, the Facebook Libra project, which is about to be launched in 2020, is putting pressure on monetary regulators, prompting them to seriously think about the CBDC release. Thus, the central banks of various countries do not have much time to take retaliatory steps and develop their own digital alternatives.

Cliffmeit emphasized that CBDC can replace cash, thus allowing banks to move “deeper into the territory of negative interest rates.” In addition, new means of payment will expand the possibilities of monetary policy, especially in the context of stimulating business activity.

Meanwhile, Libra Association managing director Bertrand Perez said the Libra digital currency can help achieve sustainable development goals , including eliminating poverty and achieving gender equality.

Speaking in Geneva at a UN-led blockchain event, Perez added that the authorities should not be worried about the impact of the project on the monetary sector and monetary policy of central banks. According to him, Libra does not imply the issue of new money, since fiat currencies will serve as its reserve. As Der Spiegel recently reported, Facebook’s digital currency reserves will be 50% US dollar, 18% euro, 14% Japanese yen, 11% British pound and 7% Singapore dollar.

The fact that Libra does not threaten the monetary sovereignty of states was previously stated by Calibra CEO David Marcus. He also emphasized that we are talking about a payment system, and not about creating new money.

Recall that in August, representatives of the People’s Bank of China said that the country's sovereign digital currency is almost ready to launch after five years of development. Details about the characteristics of this CBDC are described in a separate large material .

Subscribe to BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.