Estonia’s Central Bank Tests Blockchain-Powered Digital Euro Solution
After completing its digital currency trial, Estonia central bank (ECB) concludes that the digital euro (Europe’s Central Bank Digital Currency) is poised to handle almost unlimited payment settlements. ECB collaborated with other euro-based central banks to complete the pilot phase.
Digital Euro System Pilot Processes Over 320,000 Payments In One Second
After deep research, the digital euro project concluded that a blockchain-built electronic payment solution would be ideal for processing unlimited payment transactions. It also concluded that this electronic payment system would meet anti-money laundering requirements without compromising privacy.
Apart from Estonia central bank, other participants in the project include the central banks of the Netherlands, Ireland, Latvia, Germany, Spain, Italy, and the European Central Bank. Two weeks ago, European central bank authorities approved more tests on the digital euro but didn’t provide a schedule of any launch date.
In its report, Estonia central bank remarked that digital financial transactions were conducted among digital account owners from Spain, Lithuania, Estonia, and Latvia during the trial. It discovered that 300,000 transactions are completed concurrently in less than one second, and recipients received their funds within two seconds.
Estonia‘s apex bank further highlighted that the carbon footprint of the digital currency is way shorter than the card payment currently in use.
New Trial Proffers Solutions To Previous Problems
Estonia central bank analysts have revealed that this newly completed trial allowed them to resolve some previously identified issues. They further noted that the digital euro could be made to process more payments (when it becomes necessary) since the blockchain technology being used is highly scalable.
It also remarked that blockchain tech doesn’t restrain the supply or volume of money in circulation. The current stage of the pilot isn’t concluded yet. Estonia central bank wants more participants (especially financial institutions such as banks and other financial service providers) for this pilot phase.
Thus, it can have detailed test phase before the digital euro is launched. This stage will be termed completed after all technical nuances of this digital euro among the European nations are completely resolved. It is estimated that this phase will be concluded in the next two years.
In some regions such as India, the authorities are already onboarding private firms at every stage in the digital currency process.
Senator Warren Softens Hard Stance On Cryptocurrency
Former American presidential hopeful, senator Elizabeth Warren has finally admitted that the digital currency space might be the solution to one of the top problems facing the conventional financial system. Senator warren aired her opinion while speaking with CNBC squawk box reporters today.
She stated that “it is a known fact that traditional banks haven’t reached all customers all these years. But virtual currencies and central bank digital currency might be the solution.” She also acknowledged that several other issues are plaguing the current financial system.
Warren’s latest change is a surprise given she recently called the crypto community a group of “faceless, shadowy super coders and miners” as recently as yesterday in an interview strictly about cryptocurrency.
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