The European Central Bank has issued an extensive 50-page report on a digital Euro.
The introduction of the report states that the Governing Council of the ECB has decided to move forward with work on a possible adoption of the digital Euro to meet the needs of the digital age. The digital Euro should thus be introduced alongside cash, but it should never replace it.
One of the main objectives is to create synergies with private payment solutions, which should in turn contribute to a more innovative and competitive European payment system. The digital Euro is also intended to serve as a unifying force for Europe’s digital economies.
The report shows that the ECB is in favor of the digital Euro, but adds that it is still too early to commit to a specific concept of the digital Euro. However, the report is intended to serve as a basis for dialogue with citizens and other stakeholders.
But let’s look at the specific benefits of the digital Euro that the ECB has mentioned. One of the main benefits is to support the Eurosystem’s objectives by providing citizens with immediate access to a secure form of money in a world facing digitization. In this way, it will support Europe’s drive for continuous innovation and also it will contribute to its strategic autonomy by providing foreign payment providers with fast and efficient payments inside and outside of Europe.
The ECB further emphasizes the fact that the digital Euro may even become necessary in many multiple scenarios that would affect the use of cash.
European Central Bank also paid particular attention to the comparison of the digital Euro with cryptocurrencies and stablecoin, and emphasizes that the digital Euro is not a crypto-asset or ‘stablecoin’.
The main difference is that the digital Euro will be a digital presentation of cash that will be issued by the Central Bank and will always remain its liabilities.
Read also: Europe is preparing for the AGE of the Digital Currency
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