In industrialized countries, Wieland sees possible applications in online retailing, for example. "In the current negative interest rate environment, a stable coin offered at least at 0% interest or even with a slightly positive interest rate could gain market share at the expense of central bank money," Wieland said.
But with the use of digital currencies, the central bank would miss out on seignoriage, the profit from money creation. "Just as the ECB does not want the euro area to be dollarized, it does not want it to be diem-ized. Because even then, the demand for euros decreases and the demand for dollars increases, because the diem will be tied to the dollar."