Former European Central Bank Deputy Governor: Consumer-oriented central bank digital currency will wait another 10 years

Former European Central Bank Deputy Governor and former National Bank of France Christian Noyer said that although more than 50 central banks are currently interested in central bank digital currencies, consumer-centric central bank digital currencies may take another 10 years to develop.

According to the Financial Times, Noyer also predicts that digital payments between commercial banks will happen soon.

He said that with the decline in cash usage and the rise of private cryptocurrencies such as Facebook's Libra, a large number of central banks have begun to study the possibility of implementing central bank digital currencies. Sweden and Uruguay even launched consumer-based digital currency pilot projects.

However, Noyer believes that top financial institutions are "obviously hesitant" in this regard due to concerns about privacy and the impact on monetary policy control. So it remains to be seen whether they will implement these projects over the next decade. Noyer believes that there is still a long way to go because there is still a lot of work to be done.

One problem that may arise with consumer-oriented central bank digital currencies is that consumers open accounts with central banks instead of using commercial banks as intermediaries. This will put the central bank in charge of users' checks and anti-money laundering (AML) measures. This will also undermine the position of commercial banks in the financial system.

Noyer has been President of the Bank of France for 12 years. Prior to that, he was Deputy Governor of the European Central Bank, which was established in 1998.

Image source: Pixabay

By Liang CHE

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