A member of the Council of the European Central Bank (ECB) officially supported the wholesale trade in digital currencies of the central bank (Central Bank Digital Currencies) in one of his interviews.
Vitas Vasiliauskas, a member of the ECB Board of Directors and the Chairman of the Board of the Central Bank of Lithuania, said that the European regulator was faced with the question of whether to open wholesale trading in digital assets for large financial institutions. If the retail trade in cryptocurrencies will be available to all comers, wholesale transactions will be able to make only a limited circle of persons, among which, first of all, banks.
Vasiliauskas considers both sides of this issue. Wholesale CBDC can contribute to improving the efficiency of payments and settlement of securities, as well as reduce credit risk.
Wholesale trade CBDC will be able to replace or supplement the reserves of cryptocurrency in the central bank. The digital currency will be a bearer asset, which means that transactions can be made without intermediaries.
In turn, the retail trade of CBDC can be built either on the basis of value, which by its nature resembles cash, only in electronic form. Or based on a system of individual accounts in central banks that will be accessible to everyone.
Vasiliauskas said that CBDC retail trade already has analogues. For example, in the central bank of Lithuania there is a payment system that supports “instant payments 24/7”.