Central Banks around the world are contemplating issuing digital currencies. The ECB is not any different.
Plans for Digital Euro
Recently, Christine Lagarde – the president of the ECB said that the digital Euro was not intended to replace cash. She was speaking at the European Parliamnent’s plenary session. The occasion was the 20th anniversary of the the introduction of Euro as the Euro zone currency.
She clarified that the digital Euro was only meant to complement fiat currency. She added that the prime motivation behind the introduction of the digital Euro was to provide people with choice. People could now pay through digital Euro. This enhances accessibility, convenience, and inclusion. The use of digital money makes online transactions safe and risk-free.
There is an ongoing study meant to last two years to study the digital Euro. On completion of the study a decision would be taken on the development of a digital Euro. If a decision is made to introduce a digital Euro, then multiple options will be generated. Each of them will be tested for compatibility with banks and other firms that will provide the technology and services.
A perusal of the ECB’s website reiterates what Lagarde said. The digital Euro will also be a Euro – only in digital form. It will be money in electronic form and available and legal all across the Eurozone. It will be issued by the Eurosystem.
Simultaneously, moves are also afoot to introduce a bill that will provide legal sanction for the digital Euro. The legislation is planned to be introduced by 2023.