European Central Bank experts: “the digital euro will be released in 4-5 years»

European Central Bank experts: “the digital euro will be released in 4-5 years»

Several experts from European central banks agreed that it would take four or five years to create a proof of concept for the digital euro.

During the panel discussion
Under the title “Updating Money to the Digital Age: Introducing the Digital Euro”, the participants agreed that the ECB’s current task is primarily to introduce everyone to the features of the digital euro, postponing any implementation of the concept for the future.

Austeja Šostakaitė, an expert on the market infrastructure of the European Central Bank (ECB), said that the ECB will not make a decision on whether to switch to the digital euro until mid-2021. At the moment, Shostakaite said, the question is: “How do we introduce the euro into the ecosystem and how does it interact with the money of commercial banks?»

Presentation Austie Lastacia during a panel discussion “Update money before the digital era: the introduction of a digital Euro»

Carl Andreas Claussen, an adviser to the Swedish Central Bank, said that the central bank will complete the proof of concept of the electronic crown in February. However, there are “four or five years”left before the real launch of the state-owned cryptocurrency. Claussen said:

“There are some legal issues, and this is a difficult situation, it is difficult for us to deal with it. We need political support. We have proposed to the Parliament to create a committee of experts to consider this issue.”

Recently, the Bank of Sweden called for
The parliament will legalize the state cryptocurrency as a means of payment. The Swedish Central Bank began testing Europe’s first state-owned cryptocurrency, e-Krona, in February this year. It should be noted that Claussen referred to the Central Bank’s ambitions for cross-border use of the state-owned cryptocurrency, although few transactions occur in krona, given the relative utility of the euro or dollar. Lastacia suggested that external competition can accelerate the expected timing of the development of a digital Euro.

“If there are foreign state-owned cryptocurrencies or perhaps Facebook’s stablecoin that come into the eurozone, it could speed up the process,” she said.

Last week, it was reported that the Facebook Libra stablecoin will be launched
in January 2021, despite regulatory problems. At first, Libra will be backed only by the US dollar in a 1:1 ratio.