On October 30, The Association of German Banks, which includes giants such as Deutsche Bank, Credit Suisse, and Commerzbank, proposed launching a crypto-based digital euro, “to withstand the competitive pressure from the U.S., and soon probably also Chinese technology companies”.
Banks urge establishing a “common pan-European payments platform for a programmable digital euro” and to provide the euro stablecoin’s interoperability with fiat. The Association maintains that there is no doubt that cryptocurrencies “feature a significant technological innovation” due to the usage of smart contracts, which can make processes more efficient and facilitate instant payments.
German banks call to unify the stances and create a common framework for “programmable” money. The proposal highlights the importance of tax enforcement, “especially in third countries,” and users’ identification. The Association stands for verification standards as strict as the banks, which are required to maintain traditional forms of money, and to eradicate such illegal practices as money laundering.
The Association maintains a negative position with regards to Libra or similar projects, if they do not fit “into the state-determined system”, highlighting that the state is the only responsible party ensuring the safety of the monetary system. According to their official position, “anything else would ultimately lead to chaos and instability.''
In the position paper, the Association shares their stance on the Facebook-led cryptocurrency project Libra as a stimulus for reaching “social consensus” on how cryptocurrencies can become a part of the traditional financial system. As COIN360 reported earlier, five core EU member states are reportedly working together to not allow Facebook to issue its virtual currency Libra in the European Union.