February 11, 2020
By Tiasha Chatterjee
The European Commission made an announcement on Wednesday (Feb 9) that they shall be proposing a bill by early 2023, which will introduce a digital euro, a report by Politico confirms.
Here’s what we know so far –
- The European Central Bank (ECB) has already started to experiment with the digital euro, and they have made promises to start working on a prototype by the end of the upcoming year.
- The digital euro is expected to be prepared by the beginning of 2025 if the European Central Bank is able to reach a decision regarding its issuance.
- The digital euro is going to the Central Bank Digital Currency (CBDC) of the European Union. A CBDC is the digital interpretation of a fiat currency, like the US dollar or euro, which is supported by the Central Bank. Many other countries have already started to research and isssue their own CBDCs, most notably China.
- European lawmakers have expressed their concerns about the rise of CBCDs. They say that cryptocurrencies that have a private backup, such as the previously Meta-backed Diem and Bitcoin, might sabotage the demand and popularity of their fiat.
- Fabio Panetta, an ECB Executive Board member said in November, “If we don’t satisfy this demand, then others will do it,” thus backing up the cause of the creation of this digital euro.
About the author
Tiasha Chatterjee is a content writer with a great curiosity to learn about new things. Combining this curiosity with her interest in the English language, she loves to write about different subjects, including blockchain. When not writing, you’ll find her surrounded by her cats, soaking up another book.