German Banks Call For Digital Euro And Smart Contract Functionalities

More than 200 German Banks are calling for digital euro with smart contract functionalities backed by the European Union and they expect it to happen soon. In today’s cryptocurrency news, we find out more about their demands.

The association of German Banks, which is basically a collective of private banks that coordinate as the principal lobbyists for Germany’s finance industry and counts national mainstays like Deutsche Bank, demanded for the development of a programmable euro or a digital euro because it can lead to innovation with great potential and the next stage of the digital evolution.

The association said that they are extremely committed to helping the initiative come to fruition but they will need some strong partners across Europe to collaborate on the project:

 “The German private banks will play their part in establishing a sustainable and innovative monetary system. For this purpose, a programmable account and crypto-based digital euro should be created and its interoperability with book money ensured.
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The condition for this is establishing a common pan-European payments platform for the programmable digital euro.”

How will the European partners react to the demands, remains to be seen. Notably, the call to action comes right when China started accelerating the plans for a digital yuan and the embracing of blockchain technology but also since there is a rumor that America will be shifting the US dollar onto the blockchain.

Even in Switzerland, there have been rumors around the actualization of a digital franc. In 2018, the main stock exchange of Switzerland, SIX Swiss Exchange, called on the nation’s central bank to create a digitalized franc that could be used on the SIX’s coming decentralized exchange:

 “SDX member banks will be able to settle their trades and other obligations against tokenised CHF [francs] within SDX once we are up and running. To facilitate this, SDX would accept CHF payments from member banks in central bank money and issue equivalent tokenised CHF in SDX. The value of tokenised CHF would be pegged 1:1 with CHF at all times. We most definitely favour a central bank issued stablecoin.”

SNB and SIX announced this month that they will be partnering with the research regarding the trading of digital central bank currencies.  But unlike the German Banks, South Korea’s central bank has made it very clear that it sees no need to launch a state-backed digital currency according to the comments from the director of financial settlements of the Bank of Korea.