ECB Officially Starts to Investigate Digital Euro — Development Could Begin in 2 Years – Regulation Bitcoin News
The European Central Bank (ECB) says it’s “starting to investigate” a digital euro by launching a two-year investigation. ECB President Christine Lagarde believes the ECB needs to be prepared to answer individuals’s calls for for digital currencies and provide you with a European-based resolution that “does not jeopardize the whole banking system.”
Lagarde Unveils ECB’s Plans to Respond to Digital Currency Demand With Digital Euro
The president of the European Central Bank (ECB), Christine Lagarde, talked about central financial institution digital currencies (CBDCs), notably the digital euro, in an interview final week with Klaus Schwab, founder and govt chairman of the World Economic Forum.
Following the interview, Lagarde tweeted: “We at ECB believe that we should be ready and have the technology available to respond to people’s demands. That’s why we are launching a two-year investigation into a digital euro.”
The ECB’s web site states:
We at the moment are beginning to examine what a digital euro would possibly seem like. This investigation section will begin in October 2021 and final for about two years.
“We will look at how a digital euro could be designed and how it could be distributed to merchants and citizens, as well as the impact it would have on the market and the changes to European legislation that might be needed,” the European Central Bank detailed.
ECB chief Lagarde additional defined to Schwab, “If customers prefer to use digital currency rather than have banknotes and cash available, it should be available.” She opined:
We ought to reply to that demand. And be sure that now we have an answer that’s European based mostly, that’s safe, that’s obtainable underneath pleasant phrases, that can be utilized as a method of fee at affordable phrases as effectively and doesn’t jeopardize the entire banking system, which needs to be half and parcel of the proposal.
Lagarde continued: “So that’s the reason why we’ve decided to go ahead with a two-year experiment to ensure that we can actually respond to that demand: Availability, just as cash is available and will continue to be available, but it will be a consumer’s preference; the safety and security of the device; user-friendliness; cheap cost; and ways of transacting business that will be recognized and accepted not only in the euro area, but around the world.”
The ECB clarified:
Once the investigation section has ended, we are going to resolve whether or not or to not begin creating a digital euro. We would then create and check doable options, working along with banks and corporations which may present the know-how and the fee companies.
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