The European Central Bank steps up development of a centralized digital currency amid...increasing financial instability
</p>The European Central Bank (ECB) may startdevelopment and testing of the digital euro at the end of 2023, Fabio Panneta, a member of the ECB's executive board, said at the National College of Ireland. This phase, he said, could take up to three years.
Panetta noted that the introduction of the digital eurois aimed at strengthening the monetary sovereignty of the European Union and providing a reliable and stable monetary base for the creation of new payment and financial services in the era of universal digitalization. The advantage of the digital euro over the traditional form of money, Panetta called the desire to offer a free secure means of payment, available to everyone anytime and anywhere.
Speaking about the growing public interest in digital money, he also commented on the volatility of the cryptocurrency market.
“Recent Developments in the Crypto Asset Marketillustrate that it is an illusion to believe that private instruments can act like money when they cannot be permanently converted at par into public money. Despite claims that cryptocurrencies are a reliable form of “currency free from public scrutiny,” they are too risky to act as a reliable means of payment,” Panetta said.
It was also noted that in order to successfully developand implementation of the digital euro must be a collective effort. Therefore, the ECB will intensify its engagement with all stakeholders, including banks, payment companies, business and society at large.
In February, European Finance Commissioner Mairead McGuinness went on record that a digital euro bill would be introduced in 2023, with a prototype currency expected by the end of that year.
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