FN London

Financial News

News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Economics

Why a digital euro isn’t a forgone conclusion, despite its advantages

Pegging a digital currency to a lender of last resort will be appealing, but uncertainties remain

By

Katharine Neiss

A digital euro would allow everyone — including households and businesses — to directly make electronic payments in money issued by the ECB
A digital euro would allow everyone — including households and businesses — to directly make electronic payments in money issued by the ECB Photo: Getty Images

Katharine Neiss is chief European economist at PGIM Fixed Income and a former Bank of England official

When Facebook announced its plan to launch Libra in 2019, the news caused a collective outcry from global central banks and finance ministers. Officials were concerned stablecoins would pose a threat to financial stability and weaken the transmission of monetary policy, ultimately undermining the sovereignty of nation states.

WSJ Logo
Bank of England Keeps Rates Steady After Fed Move

Bank of England Keeps Rates Steady After Fed Move

Activist Investor Widens Call for Review of Rio Tinto’s Dual-Listing

Musk Draws First Blood With Spending Bill Bombshell

How the White House Functioned With a Diminished Biden in Charge

European Indexes Fall on Slower U.S. Rate Cut Projections