According to banknote manufacturer Giesecke + Devrient, China is not far from introducing a fundamental technological innovation to the monetary system: the introduction of a digital currency. “You just have to admit that China is one step ahead,” CEO Ralf Wintergerst said in Munich on Thursday.
China started preparations in 2014. According to Wintergerst, many other countries are faster than the European Central Bank: “You can see that many countries in Africa, the Middle East, in Latin America, but also in Southeast Asia are extremely active.”
By contrast, the ECB’s schedule for the adoption of a digital euro could “be faster,” the G+D chief said. This refers to the fact that the central bank is still ‘exploring’ a possible digital euro.
Fear of big tech players
Wintergerst highlighted an African country where preparations are well advanced: “In Ghana, people are quite afraid of the grand plans of Facebook and the big tech companies that they could use their stablecoins to undermine the national currency,” the manager said. “Stablecoins” are cryptocurrencies that are tightly pegged to an existing national currency such as the US dollar.
Giesecke + Devrient is one of the world’s leading manufacturers of banknotes and technology for both cash management and digital payment methods. According to the company, the traditional Munich company has more than 150 central banks and 2,400 commercial banks around the world among its customers. Products also include security technology for the financial sector and other industries.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
