According to the leader of the large cryptocurrency company ConsenSys, the European Central Bank would be in danger if it waited too long for the digital euro.
Monica Singer, ConsenSys leader in South Africa, joined the European Blockchain Agreement to discuss the private sector’s role in shaping central bank digital currencies, or CBDCs. She spoke about the benefits and opportunities of CBDC Monday in a panel discussion with CIB BNP Pariba, Digital Transformation Leader Dean Demellwick and Philip Sandner, professor at the Frankfurt School’s Blockchain Center.
Singer, who has served for more than 18 years as chief executive of Strate’s Central Securities Depository in South Africa, believes the current financial system is far from perfect.
According to the CEO, the current economic system is shattered by many brokers, and initiatives like CBDC are giving central banks a chance to correct their mistakes. Singer said CBDC could help the world beat banks and open up more cost-effective ways to access funds for the private sector and end customers.
If global banks miss this opportunity, she said, alternatives from private tech giants like Facebook could make fiat currencies obsolete:
If the European Central Bank has to wait until 2028, it will not be a central bank. Who will use the euro in its current form? There will be a lot of options. ”
As previously reported, the European Central Bank expects to decide whether to start experimenting with the digital euro by mid-2021. Christine Lagarde, President of the European Central Bank, believes it will take at least four years to adopt the European Convention on Biological Diversity. Meanwhile, some countries like China have been actively experimenting with CBDC since April 2020.