Private Bank Money Must Go Fully Digital
A top European Central Bank official recently stated that private bank money must undergo full digital transformation, coexisting with central bank currency as a core part of the future financial system. With the rise of digital assets and tokenization, the shift toward digital finance has become an inevitable trend.
Challenges to the Two-Tier Monetary System
The current two-tier system consists of central bank money and private money. However, with the emergence of stablecoins and other new financial tools, experts warn that this could undermine the principle of monetary equivalence. The interchangeability of currencies, regardless of issuer, is key to financial stability.
Looking Ahead: The Future of Finance
Driven by digital financial innovation, commercial banks must adapt proactively to the transformation. Digitizing private money not only improves payment efficiency but also enhances the overall stability of the financial system.