Digital currencies planned by major central banks will probably become legal tender in their jurisdictions.
While addressing a panel in Helsinki on central bank digital currencies (CBDCs), European Central Bank Executive Board member Fabio Panetta said that the outcome would “likely” be in the euro area.
Addressing the same event, Russian Central Bank Governor Elvira Nabiullina stressed at the importance of “seamless conversion between forms of money”.
In China, which will probably be the first major economy to launch a CBDC, plans for the digital yuan foresaw it being designed as legal tender from the outset. Yi Gang of China said that as long as there’s a need for cash, its central bank won’t stop supplying it or use administrative orders to replace it.
"It would be quite awkward not to have legal-tender status for an additional instrument issued by a central bank,” Bloomberg quoted Panetta as saying. Adding more, Panetta said the ECB will examine the matter over the next two years, though cautioned that achieving the status “should not be taken for granted.”
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