According to Marek Dietl, CEO of the state-controlled Warsaw Stock Exchange, in order to safeguard Poland’s ability to conduct free monetary policy, the country’s authorities will have to choose between joining the eurozone and launching a national central bank digital currency (CBDC) (WSE).
According to a recent Dietl research, the National Bank of Poland (NBP) may be obliged to issue digital zloty in order to maintain the country’s monetary sovereignty.
While Poland is a member of the European Union, it is not yet a member of the eurozone, and the zloty is not yet part of the exchange rate mechanism. “Poland does not have a target date for adopting the euro, but aspires to do so as soon as possible,” according to the European Commission website.
If Poland does not join the eurozone, which currently includes its fellow 19 European Union member states, Dietl believes the country should step up its efforts to establish a CBDC “in a situation where, in a few years, the architecture of the global financial system will most likely be determined by digital currencies: the dollar, euro, and yen.”
“In this new approach, traditional fiat money and digital currency would operate in parallel, and the [Polish] central bank would have complete control over the base and monetary policy, allowing it to not only defend the zloty, but also create circumstances for its expansion,” Dietl explained.
The CEO expands on remarks he made during a panel discussion in May in the research, which was published by the country’s conservative think tank Jagiellonian Institute.
“If we do not establish the digital zloty, we will find ourselves utilizing the digital yuan, dollar, or euro since it is more comfortable to use and liquid,” he stated.
Dietl argued that the digital zloty could provide a wide range of benefits to Polish consumers by democratizing their access to various segments of the financial market, and that “such a digital currency is inevitable, all the more because there will be increasingly efficient safety measures, although there will also be those who will want to override them.”
However, the present leadership of Poland’s central bank has expressed little interest in issuing a CBDC.
During the same debate, Marta Gajcka, Member of the NBP Management Board, stated that the bank was not working on the digital zloty project, but was observing such efforts by its peers across the area.
“Digital currency must be associated with secure, dependable technologies. “At the moment, there is no mechanism in the world that guarantees 100 percent safety,” she explained.