Deutsche Bundesbank President Jens Weidmann will give a speech entitled “New European Drive” in Vienna, Austria, on March 26, 2018. (Herbert Neubauer / AFP via Getty Images)
Frankfurt — The digital euro, currently being designed by the European Central Bank, could initially play a limited role as it could disrupt the banking sector and overextend the role of the central bank, the German Federation said. Bank Governor Jens Weidmann said Tuesday.
“Given the risks involved, a step-by-step approach may make sense, meaning a digital euro with a specific feature set and the option to add more features later.” Weidmann said at the meeting.
The ECB put a green light on the digital euro earlier this summer, but the actual launch of the currency could still be about five years away.
Among his major concerns, Weidmann could destabilize the financial system when consumers rush to convert bank deposits into central bank money and withdraw major sources of funding during a crisis. Claimed to have sex.