ECB's Valimaki: digital euro will not be an investment object

The European Central Bank's (ECB) recent announcement about the potential launch of a digital euro has sparked widespread interest and speculation. However, according to ECB's Ville Valimaki, the digital euro will not be treated as an investment object.

Valimaki, who is the Head of Digitalisation at ECB, made this statement during a recent interview. He emphasized that the digital euro is primarily designed to serve as a means of payment and not as an investment asset.

Valimaki clarified that the digital euro would be a form of central bank digital currency (CBDC), which means that it would be backed by the ECB and would have the same value as the physical euro. This would make it a safe and secure option for consumers to use for their day-to-day transactions.

He further added that the digital euro would not be subject to the same market fluctuations as cryptocurrencies like Bitcoin. Unlike cryptocurrencies, the digital euro would not be traded on exchanges or used for speculative purposes.

Valimaki's statement is significant given the recent surge in interest in cryptocurrencies and other digital assets. Many investors have been drawn to these assets due to their potential for high returns. However, they also come with a high level of risk, as their values can be highly volatile.

The ECB's decision to launch a digital euro is driven by the need to modernize the European payments system. The rise of digital payments and the decline of cash usage have made it necessary for central banks to explore new payment options.

The digital euro is expected to offer several benefits over traditional payment methods. It would be faster, cheaper, and more convenient than cash or card payments. It would also provide a secure and reliable alternative to private payment providers like PayPal or Apple Pay.

Valimaki's statement should help to allay concerns about the potential risks associated with investing in the digital euro. By emphasizing that it is primarily a means of payment, he has made it clear that it is not intended to be used as a speculative asset.

Overall, the launch of a digital euro represents an important step forward for European payments. It has the potential to revolutionize the way we make transactions and could help to boost economic growth across the continent.