02.07.2019 - Studies

A digital Euro to compete with Libra

by Thomas Mayer

Digitalization would give the euro a viable long term perspective, which it is unlikely to have in the credit money system.

On 18 June 2019 a group of 28 companies led by Facebook published a White Paper proposing the creation of new crypto currency named Libra. The initiative could give the digitalization of money a big boost. Digitalization would also give the euro a viable long term perspective, which it is unlikely to have in the credit money system. Credit money needs a state for its reinsurance that cannot be created for the euro area. Digital money, on the other hand, can exist without a state guarantee.

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