Digital currencies likely to be legal tender, say Central banks

Digital currencies planned by major central banks will probably become legal tender in their jurisdictions, according to officials studying such initiatives. That outcome is “likely” in the euro area, European Central Bank Executive Board member Fabio Panetta told a panel in Helsinki on central bank digital currencies (CBDCs).

Addressing the same event, Russian central bank Governor Elvira Nabiullina concurred. She stressed the importance of “seamless conversion between forms of money”.

Ensuring CBDCs are legally recognised as a form of payment alongside banknotes and coins could give the new form of money an edge over other types of electronic payments.