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Highlights
- ECB is geared to launch the Digital Euro in the next four years by 2026.
- In a speech, Fabio Panetta, an executive member of the European Central Bank, said that ECB could perhaps lay the groundwork for the possible digital euro for the EU member countries in 2023.
- Panetta added that though the cryptos claim to be trustworthy and free from public control, they still come with their share of risks, and one has to be wary of using them as a mode of payment.
In the last few months, the European Central Bank (ECB) has been aggressively working on a plan to launch Digital Euro. The ECB officials have been working tirelessly for some time now to make sure a smooth launch of the central bank digital currency (CBDC). However, it was not without its due share of privacy-related issues, anonymity, etc.
But now, it seems after months of deliberations, ECB is all geared up to launch the Digital Euro by 2026. In a speech, Fabio Panetta, an executive member of the European Central Bank, said that ECB could perhaps lay the groundwork for providing a digital euro to its member countries in 2023.
Also read: How Terra's (LUNA) US$30 bn crash is benefitting this crypto
The process primarily will ensure digital currencies as a mode of payment in the next five years. Panetta added that making the digital currency a legal tender and in the form of a P2P payment system could promote the adoption of virtual currencies in mainstream.
Terra was never risk-free
Panetta’s statement has come at a time when the crypto industry is reeling under the bearish run. The crash last week saw Terra Protocol losing approximately US$30 billion from the crypto industry. Panetta said that stablecoins were never risk-free and posed a vulnerability to the crypto market.
Panetta added that the recent development illustrates the illusion that instruments such as cryptos can become a reliable medium in the payment system. Though the cryptos claim to be trustworthy and free from public control, they still come with their share of risks, and one has to be wary of using them as a mode of payment, Panetta noted.
He further emphasized that it raises multiple public policies and financial stability concerns as it is speculative.
Mode of payment in retail stores
In his earlier speech in March, Panetta stressed that digital euros would primarily be used as a mode of payment in retail stores. He said that people would be more comfortable using a digital euro in physical and online stores and other P2P payments.
Also read: Why this Japanese Bitcoin is on a hot streak in crypto market?
However, he said that even the retailers need to keep an open mind towards the digital euro for its mass adoption.
Bottomline
Overall, ECB’s aggressive intent showcases that they are all set to lay the groundwork and get the ball rolling when it comes to the digital euro. Whether it will be launched by the stipulated 2026 remains to be seen, but Europe could soon have its P2P payment system in place, which would be uniformly accepted across the region.
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