A senior ECB official says the digital euro could soon become legal tender across the EU region as the ECB will begin exploring how to do this over the next 24 months. Let’s find out more about it in our crypto news today.
Fabio Panetta, a senior ECB official, said the institution would look into how to make the digital euro legal tender in the region.
Panetta announced that the digital version of the euro could become legal tender in the EU. The Italian economist and ECB member hinted at this unwise practice during a panel discussion in Helsinki, claiming that if the European Central Bank continues its efforts to introduce digital money, the new form of money has a chance of becoming legal tender. EU borders.
Panetta added that the authorities will review efforts over the next two years, but the ECB member also stressed that reaching this step should not be taken for granted and that the new financial institution should exercise caution. Last week he countered the argument that the project was redundant in the context of other alternative currencies as the ECB would try to make the CBDC cost-effective and ensure its usability. The Italian economist added that the central bank’s digital currency needs to be attractive in order to attract society’s attention.
Elvira Nabiullina, head of the Russian central bank, agreed with Panetta on what this digital central bank currency should look like. She believes that state-controlled CBDCs represent the future of financial networks and has become a stern critic of private digital assets, which are extremely volatile and can even cause investors to lose a large amount of money trading them. The European Central Bank has outlined plans to initiate an investigation phase of the digital euro project, which will take place over the next two years. During the pilot phase, the research branch of the ECB will try to address the central design and distribution issues that a digital version of the euro must have in order to be able to meet the needs of the population in the future.
CBDCs should prevent illegal activities and avoid harming financial stability and monetary policy, said Christine Lagarde, President of the European Central Bank. The ECB also promises that the energy consumption of the digital euro will be negligible compared to Bitcoin. It’s worth noting that CBDC and BTC are two very different assets.