Many countries are working towards actualizing the dream of having an efficient Central Bank Digital Currency (CBDC) amidst challenges they face towards achieving their goals. The European Union is adamant about an efficient cross-border financial system, especially within the European borders.
Thus, the Union plans to create the digital Euro, which countries within the Union would use in meeting some of their settlements. Apart from making cross-border payments easy, when experts finally create the digital Euro, it would accommodate timely payments and lower transaction fees within the region. The European Central Bank (ECB) released a post via Twitter concerning the bank’s thoughts on the digital euro creation based on recent happenings.
Christian Lagarde opines that the digital Euro would be useful
Many key players are pushing the Union to create the central currency, and one of the most prominent influencers would be Christian Lagarde, the group’s President. The President explained that when the group creates the digital Euro, it will meet the region’s citizens’ needs. She added that before the digital currency becomes useful, it would have to go through some more work to allow proper implementations for its creation.
Experts see cryptocurrency as the future of money, thereby influencing an advancement like the digital currency created for various countries. Europe is the only continent planning to create a central digital currency for many countries as most nations of the world hope to make central creations within their region only. The President commented on a meeting held recently concerning the creation of digital assets for the region.
She explained that the digital Euro would help all citizens when people asked her if the digital currency would be useful. The President pointed out that China’s digital Yuan greatly influences the continent’s renewed interest in making a digital currency. An executive from the ECB further described the digital money to create inclusive and effective payment within a technologically advanced era.
Other Digital Currencies could threaten EU’s sovereignty
One of the group’s executives, Fabio Panetta, looked at things from a different view and described foreign stablecoins and other digital currencies with Europe disrupting the region’s sovereignty.
Panetta opined that a foreign digital currency could dominant the European market as the major form of digital currency, which seems to worry the executive. Looking at China’s current plans, the country plans to expand globally, including promoting use in every country of the world.
Compared to the European and Chinese efforts on digital currency creation, the US seems to have other plans, and that might not include creating a digital currency in years to come. One of the country’s key players, Jerome Powell, explained that the nation needs to take the creation process very carefully.
The government feels secured since people use the US dollar from every part of the world. But sometime last year, some American citizens raised some issues about China planning to eradicate the dollar as the world’s reserve currency, which the latter denied. China explained that its digital currency is mainly to make cross-border payments easier.