Europe looks to a digital Euro

The ECB and the central banks of the countries in the Eurozone are considering starting to use a digital Euro

Doubts and opportunities of the digital Euro

There are many questions that decision-makers are currently considering. 

Certainly, the introduction of a digital European currency would benefit citizens in many fields. Paying in this innovative way would greatly cut through all those bureaucratic processes that tend to slow down the economy.

We all know that digitalization is now an integral part of everyone’s life and that even the way of purchasing a product has changed a lot. 

The possibility of paying with a digital Euro (issued by the Eurosystem) would become normal and common practice in all contexts.

However, the ECB maintains that a European digital currency would not replace the current banknotes but would quickly become an alternative, secure and rapid instrument. The analytical economic return would then be mainly assessable in retail payments.

At present, we are trying to enumerate all those points that could only bring innovative results and benefit the European economy.

Fabio Panetta, Member of the Executive Board of the ECB, admits that a digital euro would benefit all those situations where the current money is not the best solution. 

Moreover, in terms of security and privacy, it would give the possibility to citizens to be able to use digital payment without any problem.

Digital Euro, Europe takes two years of time

According to the analytical estimate of the competent bodies, the project already launched in July now sees the second part of the investigation. 

In just under two years, all situations in which it will be possible to use it will be examined.

That will lead to a clear ascertainment of the European market dynamics in relation to the rules governing the Union’s plans. 

After this phase, which is expected to be quite long, different fields will be compared. 

All this, always in collaboration with national banks and companies involved in the development of the necessary technology. 

And it is precisely on its digital configuration that the longed-for Euro seems to be delayed in its response. The solution could be to frame the main road through which to develop it.

The ECB experts in charge of the project have defined a series of points to which the European digital currency should respond without any problems: 

• Ease of access
• Security
• Soundness
• Efficiency
• Privacy compliance
• Adherence to all regulations

For all intents and purposes, the European Central Bank would be the official manager of the digital currency representing all countries that join and are part of the Union.

It will not be a cryptocurrency

What is striking is that the ECB emphasizes that the future digital Euro does not belong to the cryptocurrency dimension. Due to volatility and not being guaranteed by the public institution, these do not appear to be a comparison model.

However, the world of payments is changing, and if, on the one hand, European experimentation will lead to the birth of a digital currency in time, it cannot fail to confront a whole other cryptocurrency dimension that is only growing.