The European Central Bank (ECB) Announces Preparation Phase for Digital Euro Project
The European Central Bank (ECB) has revealed that it will be entering a “preparation phase” for its digital euro project starting next month. This phase is expected to last two years and will involve finalizing a rule book and selecting providers to develop the necessary platform and infrastructure. The goal of the digital euro is to create a form of cash that can be used for all types of payments in Europe, and it will be free for private users.
Unique Features of the Digital Euro
What sets the digital euro apart from other central bank digital currencies (CBDCs) is its wide range of features. According to the ECB, it will be usable for person-to-person transactions, point-of-sale purchases, e-commerce, and government transactions. This level of utility makes it the only digital payment method with such versatility.
Emphasis on Privacy and Security
ECB President Christine Lagarde states that the main motivation behind the digital euro is to develop the national currency of the future. She assures that physical cash will always remain available alongside the digital currency, ensuring that no one is left behind. Additionally, privacy and security will be prioritized, with strict rules governing its use.
No Confirmation on Digital Euro Issuance
It’s important to note that the transition into the preparation phase does not guarantee the issuance of a digital euro. The ECB’s Governing Council has stated that a decision on rolling out a digital euro will only be made after the completion of the European Union’s legislative process.
Hot Take: Latest Developments in CBDCs
– Ethereum co-founder Vitalik Buterin expresses skepticism about CBDCs and expresses concerns about overseas travel.
– The US House Committee passes a bill to prevent the Federal Reserve from issuing a CBDC.
– India’s central bank governor highlights the efficiency of CBDCs in facilitating cross-border payments.
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