Published on June 9th, 2018 | by bitcoin0
Deputy Governor of the Bank of Italy says Government Cryptocurrencies can save EU 76 Billon Pounds.
Fabio Panetta, deputy governor of the Bank of Italy, gave a keynote address focused on central bank digital currencies (CBDCs) at the SUERF/BAFFI CAREFIN Centre Conference in Milan Thursday, June 7.
Unlike cryptocurrencies – “a liability belonging to nobody” – the deputy governor stressed from the outset that a CBDC would be a liability of the central bank, backed by its assets.
Where Panetta saw a key potential justification for CBDC issuance was to reduce costs in the production, transportation, and disposal of cash.
He cited estimations that these costs amount to about half of a percentage point of GDP in the EU annually, around €76 bln – a figure equal to almost half of the annual EU budget.
Last month, the Bank of England issued two staff working papers devoted to the issue of CBDCs.