ecb’s-panetta-says-cbdcs-‘likely’-to-be-legal-tender:-report

ECB’s Panetta Says CBDCs ‘Likely’ to Be Legal Tender: Report

Central bank digital currencies (CBDCs) will probably become legal tender in the jurisdictions of their issuance, the European Central Bank’s (ECB) Fabio Panetta said.

  • Panetta, a member of the ECB’s executive board, said this was “likely” at a panel in Helsinki on Tuesday, according to a Bloomberg report. However, this status “should not be taken for granted,” he added.

  • CBDCs being legal tender would give them an edge over other payment options provided by private companies and help achieve wider use by the public.

  • “It would be quite awkward not to have legal-tender status for an additional instrument issued by a central bank,” Panetta said.

  • Other considerations include interaction with the European retail payments market, design choices, use cases and what front and back-end technical infrastructure could best handle these issues.

  • The ECB has been discussing a CBDC since the start of the year and said in July it was commencing an investigative phase that would last 24 months.

Jamie Crawley is a CoinDesk news reporter based in London.


Subscribe to State of Crypto, our weekly newsletter on policy impact.

By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.