Taken European Central Bank (ECB) is a step closer to issuing the digital euro – a digital version of the euro common to 19 countries.
The European Central Bank said: We must be ready to launch the digital euro if the changing world demands it, especially as consumers increasingly use cashless ways to buy things.
The central bank issued Report Comprehensively, outlining the reasons that might push him to take this step, and said: He is conducting public consultations on the idea with citizens, academics and bankers.
The central bank clarified that no decision has yet been taken, and that the digital euro would be a supplement, not an alternative to regular money, and consultations are supposed to begin on October 12th.
Christine Lagarde said (Christine LagardeEuropean Central Bank President: The euro belongs to the Europeans and our task is to be its guardians.
She added: Europeans are increasingly turning to digital technology, and our role revolves around securing confidence in money, and this means making sure that the euro is suitable for the digital age, and we must be ready to issue the digital euro if the need arises.
The digital euro may differ from current non-cash payment systems run by the private sector in that it will act as official central bank money that can be trusted, risk-free, and potentially less expensive to use.
The central bank’s digital currency can also be used offline to transfer small sums between individuals who use digital wallets within their smartphones.
The use of cash is diminishing in some countries, especially Sweden, where most bank branches no longer deal with cash, and stores, restaurants and museums only accept cards or payments via mobile phone.
In addition, the epidemic has led to an increase in non-cash and touchless payment methods in stores.
The European Central Bank was struggling to make clear that it was not proposing to do away with banknotes and coins.
It is noteworthy that the European Central Bank is not alone in studying this possibility, as the Chinese central bank is testing an official digital currency, while the Riksbank says: It has started a pilot project.
A task force made up of European Central Bank experts and the 19 national central bank experts in the eurozone made it clear that there should be a risk-free digital system across Europe as demand for non-cash payments increases.