European Central Bank To Open Investigation Into the Launch of Digital Euro
The European Central Bank will launch a two-year investigation into the proposed plan to launch digital Euro. The president of the ECB revealed that the bank’s planned investigation is to make sure that the digital Euro addresses people’s concerns without jeopardizing the banking structure. Christine Legarde said this in an interview with the World Economic Forum executive Klaus Schwab.
Speaking about the launch, Legarde also stated that the Digital Euro must meet the rising demand of the people, therefore reiterated the need for the European Central Bank to be better prepared to serve the technology to Europeans. The demand for digital currencies have skyrocketed in recent times, with cuagines favoring digital transactions over fiat. The president said that the ECB must have a European-based, secure, and friendly solution that can be used as a way of making payments reasonably. However, the investigation would last for two years to determine the bank’s readiness to launch digital Euro.
Details of the Investigation Revealed
Legarde explained the reasons for the two-year investigation prior to the proposed launch of digital Euro. According to her, the investigation would begin on October 11 with a focus on the distribution and impact of the CBDC when it finally emerges. In detail, the investigation will first look into the processes involved in ensuring the distribution of the digital Euro to individuals and businesses.
Second, the investigation will examine the impact of the CBDC on the European market, various banking infrastructures, and laws required to facilitate its establishment and utilization. Legarde explained that the above objectives were the reason behind the time frame for the investigation. However, she emphasized that the CBDC won’t replace banknotes.
More Countries Exploring the Opportunities in CBDC
Interests in CBDC all over the world have risen tremendously since the start of 2021. Countries’ Central Banks have started exploring ways their countries can use CBDC and integrate them into their financial models. Ghana’s CB announced plans to launch its digitized fiat notes and reached a contract agreement with Giesecke+Devrient to pilot its CBDC program.
Jamaica is also among the countries exploring CBDC. The nation announced its CBDC rollout in September. Nigeria is another country that also looked into the future and decided to get started with its CBDC program. The Black nation announced the rollout of eNaira on National Day October 1 and has sent the guidelines for its operation to various banks across the country.
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