MNI BRIEF: ECB Already Exploring CBDC Risk Avoidance: Panetta

A digital euro could become a necessity if people become reluctant to use cash, other electronic payment methods become disabled or if foreign digital means of payments threatened to largely displace domestic money, European Central Bank Executive Board member Fabio Panetta said Thursday.

However, he underlined the challenges: technical ones such as cyber risks and the protection of privacy; others related to the possible impact on the activity of banks, financial stability and on monetary policy. Any digital euro would need to address such risks, Panetta said in a speech, noting the ECB have started to explore appropriate strategies already.