The 2020 consensus begins with an official ECB debate on CBDCs

The world’s largest cryptocurrency event, The 2020 consensus will officially take place virtually. “”Consensus: distributedThe first fully virtual Coindesk conference with Yves Mersch, the chief legal officer of the European Central Bank (ECB)as the first speaker.

On May 11th, the aforementioned ECB board member held a keynote dedicated exclusively to the central bank’s digital currencies (CBDC) that can be used by consumers. At 6:45 a.m.CET, the ECB official stated that the bank is primarily concentrating on the implementation of CBDCs in retail.

The ECB focuses on the implementation of the CBDC

When we compare a retail CBDC to a wholesaler, it is the wholesaler “Obviously big business” according to Mersch, but he speaks out for his counterpart. He explained:

“A wholesale CBDC that is limited to a limited group of financial colleagues is obviously big business. However, a retail CBDC that is accessible to everyone would be a radical change. Therefore, a central bank digital currency for private customers is now our main focus. “

The 2020 consensus begins with an official ECB debate on CBDCs
The 2020 consensus begins with an official ECB debate on CBDCs

Apparently the ECB is Among the world’s first to focus on a retail CBDC. According to a report published by the large blockchain company R3 in April, existing projects by global central banks represent an implementation of CBDCs in wholesale. Mersch found that central banks are concentrating on wholesale economies due to the risks of a shift in the entire global financial system:

“You may be wondering why, despite the use of technology to date, central banks have chosen not to give private customers access to their funds. […] The main reason is that the introduction of a retail market could have significant ramifications for the entire financial system. “

Cash is here to stay

Despite the description of the ECB’s approach in work closely on the implementation of CBDCsMersch still pointed out that their acceptance largely depends on people’s preferences. Therefore, the ECB official stressed that cash remains one of the most popular payment methods in Europe.

Until 76% of all transactions in the euro area are made in cash“That’s more than half the total value of all payments,” said Mersch. The ECB continues to be involved in research into the use of CBDCs to provide digital solutions when needed, Mersch concluded: “When the time comes, we want to be ready and I assure you that we will be.”

Consensus: distributed will gather more than 13,000 attendees from May 11th to 15thwith more than 100 conferences held online. As reported by CointelegraphThe Consensus makers decided to put the event into practice in response to the current coronavirus pandemic.

The first day of the 2020 consensus happens on the same day as the expected BTC halvingAs a result, the block reward is reduced from 12.5 BTC to 6.25 BTC. To celebrate one of the biggest crypto world events of 2020, Cointelegraph is hosting a Bitcoin Halving Party on YouTube on May 11th at 10 a.m. ET. Leading figures from the crypto community take part in the event, including Tim Draper and the first BTC acquirer Roger Ver.

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