Policymakers are divided on whether a digital euro is necessary for the eurozone in a world where cashless payments already exist but supporters of the central bank digital currency (CBDC) project argue that Europe needs a payments system that is locally controlled, the Financial Times reported.
Supporters also argue that the declining use of cash — which serves as an important stabilizing force for the financial system — will inevitably drive consumers to other payment options like stablecoins, cryptocurrencies, and CBDCs issued by other sovereigns.
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