German Central Bank Board Member Urges Creating Alternative Payment System

© AP Photo / David GoldmanIn this July 18, 2012, file photo, a pedestrian walks past credit card logos posted on a downtown storefront in Atlanta. After a stint of frugality, Americans have returned to their borrowing ways. But are they getting into the kinds of debt trouble that lead to recessions? In 2017, U.S. consumers now owe roughly $12.73 trillion to banks and other lenders for mortgages, car loans and credit card spending, according to the New York Federal Reserve. That exceeds even the total before the last financial crisis.
In this July 18, 2012, file photo, a pedestrian walks past credit card logos posted on a downtown storefront in Atlanta. After a stint of frugality, Americans have returned to their borrowing ways. But are they getting into the kinds of debt trouble that lead to recessions? In 2017, U.S. consumers now owe roughly $12.73 trillion to banks and other lenders for mortgages, car loans and credit card spending, according to the New York Federal Reserve. That exceeds even the total before the last financial crisis. - Sputnik International
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According to the financier, the banks need to follow trends supporting new technologies and creating an alternative payment system in order to preserve the stability of the European financial system.

German Bundesbank executive board member Burkhard Balz has urged European countries to create new payment systems, alternative to the American ones.

"It can't be indifferent to us as the Bundesbank, when important tech companies such as Apple, Google, Paypal, and Amazon take over the relations with clients more and more, while banks remain just payment processors in the background", Balz told Welt am Sonntag.

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He also stressed that the banks themselves should implement cutting-edge solutions.

"My appeal to the industry is: think about which products you want to use to address those of Apple & Co", Balz concluded.

Deutsche Bundesbank is the central bank of Germany and one of the vital components of the European System of Central Banks (ESCB).

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