Stephan Leithner, chief executive officer of German securities marketplace Deutsche Börse, calls for financial reforms in the European Union, including establishing a permanent digital euro.
According to Mr. Leithner, the mentioned virtual currency will help strengthen the financial autonomy of the specified region.
In a policy paper published last week, the chief executive officer of Deutsche Börse outlined a 10-step strategy for transforming the EU’s Capital Markets Union (CMU) into a Savings and Investments Union (SIU), with a central bank digital currency (CBDC) at its core.
Stephan Leithner characterizes the launch of a permanent CBDC as the main element of the European Union’s digital agenda and an essential component of the region’s financial strategy.
Speaking about the EU’s policy framework and broader approach to digital thinking, Mr. Leithner said that the European Central Bank and national central banks should work together. According to him, the implementation of the appropriate interaction practice will ensure that the digital euro enriches the ecosystem of the region’s capital markets. He stated that the joint approach of the European Central Bank and national financial regulators around CBDC will facilitate the exploration of the most suitable solutions and truly enrich the ecosystem of the European Union’s capital markets.
Moreover, Stephan Leithner drew special attention to the need for technological developments around Cash on Ledger or programmable payment systems to ensure seamless interconnection between EU’s permanent CBDCs and existing payment systems and services.
Mr. Leithner stated that the CBDC will increase the efficiency of financial transactions and strengthen the economic autonomy of the European Union.
Moreover, Stephan Leithner noted that combining various key regulatory frameworks in the EU, such as Markets in Crypto-Assets Regulation (MiCA), the AI Act, and the Digital Operational Resilience Act (DORA), would enable the euro to gain a competitive edge on a global level.
Deutsche Börse chief executive officer considers the permanent digital euro as an essential tool for enhancing financial stability, competitiveness, and innovation in the European Union. At the same time, there was no detailed information about the technical implementation or regulatory framework in the policy paper he published.
It is worth noting that last month, the banking giant Standard Chartered announced plans to establish a new Luxembourg entity offering custody services for cryptocurrencies and digital assets. The mentioned financial institution’s crypto offering will be limited to Bitcoin and Ether in the European Union. At the same time, it is known that additional assets are coming later in the current year. This was stated by the bank’s head of digital assets, Waqar Chaudry, during a conversation with media representatives.
As we have reported earlier, Hong Kong Launches Wholesale CBDC Project.
