The Association of Private Banks of Germany, which includes more than 200 financial institutions, has called for a launch digital euro. Its creation will help the EU withstand competition from the United States and China, as well as prevent possible negative consequences from the launch of Libra, bankers say.

According to the association, the new asset should operate on the basis of a pan-European payment platform and be regulated in accordance with a unified regulatory framework.

“The user of the digital euro – be it a person or a machine – must be identified. This requires a European or, even better, Global Identification Standard. It should be as strict as the one that banks and legal entities follow in accordance with the current legal framework, ”the document says.

The association noted that so far it has not been possible to integrate smart contracts and digital processes into the Single Euro Payments Area (SEPA), and therefore it is necessary to create an infrastructure for implementing new digital business models.

The creation of a digital euro will ensure the security of the existing monetary system, while the issuance of private virtual currencies, such as Libra from Facebook, can lead to “significant economic and political conflicts,” German bankers noted.

In addition, the digital euro will allow the EU to maintain its position in the international arena, they believe:

“Digital money may very soon become a reality. Europe must be competitive so that the global financial architecture does not polarize between American or Chinese technological solutions, ”the association said.