- The European Central Bank (ECB) started the investigation of a digital euro.
- This investigation phase will start in October 2021 and last for about two years.
- ECB President says ECB should be ready to respond to people’s demands for digital currencies.
Recently, the European Central Bank (ECB) started the investigation of a digital euro, stating that it will last for about two years. According to ECB president Christine Lagarde, the ECB should be ready to respond to people’s demands for digital currencies and to develop a European arrangement that does not threaten the entire banking system.
The ECB website states,
We are now starting to investigate what a digital euro might look like. This investigation phase will start in October 2021 and last for about two years.
Following the interview, Lagarde tweeted,
We @ecb believe that we should be ready and have the technology available to respond to people’s demands. That’s why we are launching a two-year investigation into a digital euro.
— Christine Lagarde (@Lagarde) September 2, 2021
In its statement, the European Central Bank detailed that it will examine how the digital euro can be developed and distributed, as well as the impact on the market and the implications for EU legislation.
According to Lagarde, if customers want to use digital currency instead of having banknotes and cash, digital currency should be available. As a result, the ECB decided to move forward with a two-year testing period to make sure they can actually meet the request.
In the same way that cash has been available for many years, and will continue to be available, consumers will now have another option of payment, explains Lagarde.
Also, according to the ECB chief, digital euro’s security, user-friendliness, low cost, and methods of conducting business will be recognized and accepted not just in the euro area, but across the globe.
As the ECB clarified, they will make a decision on whether to create a digital euro once the investigation phase has concluded. As part of this process, they will test and create possible solutions with the help of banks and companies that would provide the technology and services.
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