The statement runs contrary to a previous statement made by Jens Weidmann, the head of Bundesbank, suggesting that a digital currency comparable to Bitcoin could potentially protect European citizens.
Carl-Ludwig Thiele, a board member for Bundesbank, one of the largest banks in Europe, has confirmed that the euro zone is not considering a digital currency.
He said: “Digital central bank money analogous to cash is currently not in sight.”
Thiele also warned investors that substantial losses were very possible. He stated:
“We are seeing a rapid increase in value, which brings the risk of rapid losses.”
The European Central Bank had already suggested regulating digital currencies like Bitcoin, in spite of previous statements that the government was powerless to regulate cryptocurrencies.
Despite the rejection of the concept in the eurozone, other countries are still considering governmental cryptocurrencies. Russia and Dubai have both begun working toward nationalized digital currencies.