According to the European Central Bank (ECB), the digital Euro can only be considered successful if it becomes widely used by European consumers.
In a blog post by ECB president Christine Lagarde and board member Fabio Panetta, he published the key objectives of the digital euro.
A document accompanying this article laid out some key design considerations for the digital version of the European Union’s common currency for public use.
European Central Bank: “The Digital Euro Needs to be Widely Used to Succeed”
“The digital euro can only be successful if it becomes part of the daily lives of Europeans. It should provide added value compared to existing solutions.”
In the article, it was stated that it is still too early to determine the details of the design, but the bank expects to complete the research phase of the project in the fall of 2023.
The ECB launched the digital euro project in June 2021 and in October launched a two-year research phase for a retail central bank digital currency (CBDC).
Since then, the European Commission, the EU’s executive arm responsible for proposing new legislation, has said it will introduce a digital euro bill in 2023.
However, the ECB did not provide any information, other than occasional hints of a possible digital euro to be launched in four years, and limiting its circulating amount to 1.5 trillion euros to contain its negative impact on financial stability.
Lagarde and Panetta also said that the digital euro was designed as a payment instrument, not an investment vehicle.
The authorities also presented an example of the use of the digital Euro:
“The introduction of a digital euro will ensure that citizens continue to rely on the monetary basis behind their digital payments. It will preserve the strategic autonomy and monetary sovereignty of European payments and provide a turnaround solution if geopolitical tensions escalate.”
However, in Europe cryptocurrencies Discussions about regulation continue.
*Not investment advice.