President of the European Central Bank (ECB), Mario Draghi, has said the bank will not key into digital currency business any time soon.
He said this is due to the fact that blockchain technology is not mature enough and not generally accepted unlike physical cash which are widely used within the monetary union.
This was contained in a letter by the ECB Preseident, Mario Draghi, and addressed to Mr. Jonás Fernández, a Member of the European Parliament. In the letter, he argued that although the bank has analyzed the pros and cons of issuing a Central Bank Digital Currency, there are no plans to implement it.
“First, the technologies which could potentially be used to issue a central bank digital currency, such as distributed ledger, have not yet been thoroughly tested and require substantial further development before they could be used in a central bank context.”
In 2016, the use of physical cash within the Euro monetary system accounted for 79 percent of all payments at point of sale and for 54 percent of the total value of those transactions. Non-cash payments have grown 7.9 percent in 2017, according to ECB research.
However some countries are beginning to embrace cryptocurrency, with some announcing plans to launch national cryptocurrencies or already conducted initial coin offerings (ICOs) to introduce a state-backed digital token.
Venezuela launched Petro, an oil-backed currency in late Febuary, but Petro has since been banned by the United States of America. More so, Iran followed suit announced it will “implement the country’s first cloud-based digital currency” to counter the international sanctions it faces ever since U.S. President Trump exited the nuclear deal.
China, England, Russia, Sweden, and a host of others, are either trying to get into the cryptocurrency bandwagon or already into it.