CBDC Brought ECB to Discussion

David Kemp

There are several important crypto events than people who deal with cryptocurrencies, trading and mining could never miss. Experts stay informed about the latest news and trends occurring in the community. One of the events that draw everybody’s attention is Consensus 2020.

It’s a major event and this year it started in virtual mode. Central bank digital currencies became the main topic to be discussed by the leading members of the ECB board. The event is fully virtual. The first speaker is Yves Mersch, who introduced the public to the issues that he would like to discuss during the conference.

The officials decided that it would be of utmost importance to deliver what seems to be essential. The keynote covered the topic of CBDC. This is a type of digital currency that customers could use. Mersch announced that the bank’s priority is the implementation of retail projects.

The ECB Is Ready to Consider Retail CBDC Implementation

The participants opposed wholesale and retail digital money and the perspective of these two types of trade. The analysts claim that wholesale implementations of CBDC would mainly turn into a kind of business and this is what has happened many times before. A wholesale CBDC might be not exactly what they would like the market to execute. Now this is available for a restricted group of financial bodies and institutions. On the other hand, a retail CBDC is not limited, easily accessible, and could change the rules of the whole game. From now on, the main focus is a retail central bank digital currency.

The ECB is currently concentrated on a retail CBDC. However, the existing projects presented by central banks serve as representatives of wholesale implementation. Experts think that central banks make this choice simply because they want to avoid risks of ruining the world’s financial scheme.

The most advanced and modern technology allows retail access, yet central banks haven’t used this option just because they foresee serious consequences for the entire financial structure. Change may feel threatening and risky, but it may be what the industry needs to start offering the world more alternatives and options.

Will Cash Still Stay?

How successful the implementation will be depends on people and their preferences. Customers are willing to accept CDBC, but its adoption may take quite some time. No doubt, the ECB admitted that cash will still be here – there are a lot of people who choose this alternative as their preferred payment method across Europe.

The EU population performs more than seventy percent of transactions in cash. Mersch states that the ECB needs to further explore digital currency use. Only then would he be able to provide various solutions.

The event has welcomed over thirteen thousand attendees in the last four days. There were more than a hundred sessions transmitted online. The creators of the event wished to carry out Consensus in virtual mode due to the coronavirus issue.

The halving event has coincided with the first day of the virtual convention. Both of these great events are long-anticipated. Bitcoin is organizing the celebration of the halving and the rand is throwing a party to mark the day. This week seems to have been busy and full of special events for all people involved in the cryptocurrency industry.  This kind of change transforms people’s lives and gives greater opportunities for the future. Among those who couldn’t miss the opportunity to congratulate cryptocurrency miners was Roger Ver. Also, the event featured Tim Draper, another famous figure and influential capital investor.