March 28, 2024

The European Union prepares to launch the digital Euro

The European Union prepares to launch the digital Euro

Europe's top regulator said a digital version of the euro would retain the benefits thatprovides citizens with a fiat euro.

The European Central Bank (ECB) officiallyentered the race to digitalize the economy. The regulator reported this on its official website. The statement said that the digital euro will not replace fiat money, but rather complement it:

"Together, they [currencies] give people more freedom over how to pay, and they make it easier by making it more affordable.", - said the ECB.

The ECB also published a report prepared byEurosystem High-Level Task Force on Central Bank Digital Currency (CBDC). It said the Eurosystem will explore the potential use of distributed infrastructure in wholesale transactions to improve the efficiency and flexibility of payment systems and financial infrastructures.

Centralization at any cost

At the same time, despite its decentralized structure, all payments in any case must remain tracked by the central bank:

“The goal is to enhance stabilityfinancial sector, while central bank money should remain an asset at the heart of the payment system used to settle most wholesale transactions. ”

In addition, the ECB emphasized that despite the similaritiesstablecoins with a digital euro, all stablecoins aim to maintain the stability of their value over time, but this can only be guaranteed “with a digital euro.”

The head of the ECB Christine Lagarde noted that by developing the digital euro, the regulator contributes to the development of the digital age:

“Europeans are increasingly turning to digitaltechnology in how they spend, save and invest. Our role is to provide trust in money. This means that the euro must correspond to the digital age. "

Public consultations on the issue of the digital euro will begin on October 12. The final decision on the launch of the digital euro will be made in mid-2021.

The European Union prepares to launch the digital Euro

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