The ECB has announced that it will decide by mid-2021 when to launch a digital euro project, beginning with an investigative phase.
A digital euro to go alongside the EU’s traditional currency is now a project of the European Central Bank. ECB President Christine Lagarde said in early October that the continent must be ready to issue a digital euro. “Payment systems are changing,” added Fabio Panetta, ECB executive board member, “sometimes very rapidly, and contactless payments are emerging.”
The infrastructure of a virtual currency would need to meet some exacting standards. It would have to offer specific guarantees to citizens, provide the same services that the euro supports, give free access to a means of payment that is easy to use, and be universally accepted, reliable and risk-free.
The ECB has announced that it will decide by mid-2021 when to launch a digital euro project, beginning with an investigative phase.
Other central banks around the world have been experimenting with digital versions of currency. The People’s Bank of China will likely be the first major institution of its kind to issue one, after advanced commercial testing.
