- European Central Bank is probably pushing for the eurozone CBDC due to growing demand for cryptocurrency globally. ECB has not set any timeline to launch the digital euro.
Germany, July 15, 2021 /AlexaBlockchain/ – The Governing Council of the European Central Bank (ECB) on Wednesday announced that they will be moving into the next phase of digital euro project.
The development has come at a time when global demand for cryptocurrency is growing and more number of countries are contemplating central bank digital currency (CBDC). ECB move can be a significant step that could lead to the issuance of a Eurozone CBDC.
The announcement from ECB follows the publication of an exploratory report on the findings of a ECB digital euro task force in October 2020, as well as other successful trials.
Commenting on the push for the next phase of the digital euro project, ECB President Christine Lagarde, said:
“It has been nine months since we published our report on a digital euro. In that time, we have carried out further analysis, sought input from citizens and professionals, and conducted some experiments, with encouraging results. All of this has led us to decide to move up a gear and start the digital euro project. Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money”.
ECB has called it ‘investigation phase’ which is expected to last 24 months and aims to address key issues regarding design and distribution.
ECB is probably pushing for the eurozone CBDC due to growing demand for cryptocurrency globally. ECB has not set any timeline to launch the digital euro.
“In July 2021 we decided to launch a digital euro project. This doesn’t mean that we will necessarily issue a digital euro, but rather that we will get ready to possibly issue it.”
European Central Bank (ECB)
ECB has also criticized Bitcoin for huge energy consumption and claimed that “a digital euro core infrastructure would be environmentally friendly” and it will use “negligible” power compared to Bitcoin.
ECB has also clarified that a digital euro would complement cash, not replace it.
