Przemysław Koperski, MP from the Left, prepared an interpellation to the Ministry of Finance regarding the Polish CBDC and Libra at the beginning of September. He has just received replies, but those are not optimistic.
Digital gold is not even planned
Today, a number of central banks are working on their digital currencies. China will issue the digital yuan probably in 2021. The European Central Bank will almost certainly later, but today it is already working in this area. What is Poland doing? This was asked by the Ministry of Finance, MP Przemysław Koperski (Left).
# currencyicyfrowe💎 A few weeks ago, I submitted interpellations to the Minister of Finance on the state of preparation of our …
From the answers it is clear that our country … is waiting. Apparently, he is watching the development of the situation:
“The NBP monitors analytical, research and pilot tests carried out by other central banks in the field of CBDC issuance for retail and large-value payments. The course of discussions on this topic in various international bodies, including the EU, is also monitored. However alone NBP also does not cooperate with external entities, including other central banks, in the field of analytical, research or pilot work on CBDC issues. It also does not independently work on the introduction of CBDC in Poland.“
Also added, “That currently the government does not take direct actions with EU partners related to the introduction of the digital currency of the central bank. Moreover, it was recalled that already three years ago The NBP clearly emphasized its negative stance on CBDC. Earlier, however, the situation in the world in this field was described: it was mentioned that China is working on the digital yuan, and the Bahamas on a similar project.
Why does the NBP see no need to issue a digital zloty? There are a number of factors that prove that CBDC is not needed by us:
- the value of cash has been growing for many years. The nominal value of notes and coin in circulation (excluding bank vaults) amounted to PLN 285 billion at the end of July 2020 (at the end of December 2018 it was PLN 203 billion, and in December 2019 it was PLN 224 billion), also maintaining a high share in the supply M1 money (at the end of July 2020, 20.2% (20.1% at the end of December 2018)),
- the share of cash in retail payments has a downward trend, but remains high (57% at the end of 2018),
- in Poland, there is a strong attachment to cash. There is no interest on the part of individuals in withdrawing cash from circulation (in 2019, 62% of internet users responded against the withdrawal of cash),
- the level of financial inclusion is high (at the end of 2018, 91% of people over 15 had a payment account),
- retail payment systems and payment instruments operating in Poland are highly innovative and effective (e.g. instant payments, contactless payments);
- the digital economy, including e-commerce, has many diverse and effective payment methods that provide consumers with choice and meet their needs;
- the Polish large-value payment system SORBNET2, in which the RTGS (Real-Time Gross Settlement) interbank settlement for payments in PLN is performed, enables efficient and effective money flow in the economy. The modernization works planned by the NBP for the next 4 years will lead to the modernization of the existing solutions and an increase in the efficiency of the system.
Libra and the Polish question
Unfortunately, the Libra question was also answered without any surprises. The ministry admitted that it is monitoring the situation. As added, Facebook’s currency analysis “Also point to its potential benefits, in particular possible streamlining of retail international payments. ” The reply also said that “Implementation of solutions facilitating international payments should ensure compliance with both high security standards for customers and regulations anti-money laundering and anti-terrorist financing ”.
As the ministry adds:
“(…) a stablecoin with a significant scale of operation should not start operating in the European Union, until legal, regulatory and supervisory challenges and risks are adequately addressed identified and resolved.“
You will read the entire answer here.