The European Central Bank (ECB) and European Commission will jointly work to analyze the feasibility of the digital euro project. According to the joint statement, European Commission and ECB are striving to ensure a powerful and vigorous European digital economics zone and a firmly interconnected, stable payment sector to fulfill the emerging payment demands in Europe.
The joint statement says,
“Such a project would answer key design and technical questions and provide the ECB with the necessary tools to stand ready to issue a digital euro if such a decision is taken”.
EURICTIV (Euro policies specializes media network) communication on the European financial and economic system on Tuesday, announced that EU chief points out relevant challenges to “financial intermediation and stability, to the stream out of private-sector payment solutions, to financial inclusion, to anti-money laundering, and to counter-terrorism funding,”
The ECB chief Christine Lagarde expressed hope that the digital euro will be launched in five years.
A digital Euro would ensure the eurozone residents’ access to a secure, stable, and globally accepted payment system. The proposed digital euro would support the existing cash system and would be issued by the ECB and respective central banks.
EURICTIV says, the staff member of the European Commission consisting of Economy, financial services, and digital Affairs, will now move into a new working society with ECB for cooperation.
Christine Lagarde said,
“The euro belongs to Europeans and we are its guardian. We should be prepared to issue a digital euro, should the need arise.”
In Dec 2020, prices of Bitcoin, Ethereum, and many other crypto assets increased by many folds. This surge in prices enhanced the race for cryptocurrency mining, cryptocurrency exchanges, wallets, and demands for decentralized finance applications. The prior reasons compelled policymakers to explore and experiment with the idea of central bank digital currencies (CBDCs).
China’s massive effort to launch the digital Yuan (eCNY) is under trial in various parts of the country. Similarly, the use of stable coins as a means of payment by banks in the USA is under the proposition.
The Ecuador presidential candidate promises their fellow countrymen to deliver a national digital currency to speed up the process of internal transactions and system audit. In the future, other nations are expected to join the race of CBDCs.