The risks for banks, of the ECB’s electronic money

The main risk for the traditional banking system that could arise from the introduction by the ECB of a cryptocurrency is the flight of savers to this new form of currency, which avoids the costs of a traditional deposit account, which would weaken the banks in EURO Area. An accentuated risk in this period of pandemic crisis, where savers, challenging the banking system, could convert their current accounts. Also, what is the desired degree of anonymity? It is an issue that concerns both the respect for privacy and the fight against money laundering, which are equally legitimate objectives of society. It is not up to central banks to answer this but a political confrontation is needed to decide it, Benoît Coeuré, former member of the board of directors of the ECB and director of the bank’s technological innovation center for international settlements (BIS), also said in a recent interview