Public digital currency could be needed to lower cost of payments -ECB

A digital currency backed by the European Central Bank could be necessary if international payments within Europe remained too expensive, an ECB document said, adding that its possible adoption could be accelerated by signs of lower cash usage.

The confidential document, seen by Reuters, also says that an ECB-backed digital currency would have "far-reaching implications" for monetary policy and for banks, and therefore its possible introduction should be carefully assessed.

The document will be presented to European Union finance ministers at a meeting on Thursday.