Joachim Nagel, President of the Bundesbank and member of the European Central Bank (ECB), has emphasized the need for central banks to reevaluate their business models and swiftly adopt central bank digital currencies (CBDCs) in order to secure their future. Nagel delivered this warning during a panel session at the Innovation Summit hosted by the Bank for International Settlements on May 6, highlighting the uncertainty surrounding central banks. Speaking in Basel, Switzerland, Nagel expressed his belief that the central bank business model, which he previously thought was indestructible, needs to be revised. He emphasized the importance of integrating distributed ledger technology as physical money loses its appeal, stating that central banks must accelerate their efforts in this area. Nagel suggested that if the core product of central banks is losing its appeal, they must consider developing a new core product.
Source:
BIS
Another member of the ECB, Francois Villeroy de Galhau, spoke about central banks and emerging technologies during the BIS conference. Galhau proposed that banks explore the use of digital currencies for both wholesale and retail transactions. The ECB is currently in the process of developing a digital version of the euro, having completed the investigation phase to determine its design and technical details. The project is expected to be completed by October 2025.
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ECB member urges central banks to adopt CBDCs, revamp business model