With the launch of a public survey, the head of the European Central Bank confirms that the entity is seriously looking towards the launch of a digital euro, in the current trend of evolving towards a CBDC digital currency.
The European Central Bank is conducting a public consultation to find out the opinion of citizens of the member countries of the European Union (EU) regarding the launch and issuance of a digital currency CBDC for the euro. The proposal aims to find out how widely accepted a digital euro would be in the daily lives of citizens and whether it would meet the wide range of needs of citizens, as does the fiat money currently in use.
“We want to hear from the public and all stakeholders on the benefits and challenges of issuing a digital euro and on its possible design”
The public consultation is open from 12 October and those interested in participating must fill out the form provided by the ECB. This survey will help the entity decide whether the issuance of a digital euro is convenient for the 19-nation bloc that makes up the EU, where pilot tests are already being carried out in some countries, such as in France, Italy and more recently in Spain.
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A fight against cryptocurrencies and other digital payment methods
The European Central Bank's proposal to launch a CBDC for the digital euro or cryptoeuro, was born as part of its strategy to compete and face the boom that the cryptocurrencies, and digital assets are currently having an impact, and above all, on the intentions of other nations to dominate the world economy.
Through the cryptoeuro, the ECB can compete with the electronic means of payment that currently exist and are mostly developed by private companies and corporations. Likewise, the cryptoeuro will help the entity compete with decentralized financial products such as cryptocurrencies, tokens and other digital assets, which are gaining great popularity and acceptance among society. On the other hand, the digital news and information portal, The Payers, considers that the digital euro, which would be backed by the central bank, is an attempt by the entity to make this currency “risk-free” like conventional banknotes and coins.
“The 'digital euro' is the electronic equivalent of cash. The virtual euro would be legal tender and guaranteed by the European Central Bank. For the first time, it would allow people to have deposits directly with the ECB.”
The new CBDC currency can be stored outside the banking system, such as in a digital wallet, and function as a viable alternative to new decentralized and private payment innovations.
Importance of a digital euro
The transformation of the traditional euro into the new form of 21st century money, digital currencies, is focused on minimizing the concerns and risks that arise around the weakening of the entity's role and its monetary policy if other powerful nations issue their own digital currency, such as China, Japan or the United States.
A digital euro issued and controlled by the European Central Bank guarantees compliance with its current regulations and laws and ensures that illicit activities, such as money laundering, anti-money laundering and other financial crimes, do not occur within the Eurozone. It also guarantees the continuity of the entity's monopoly on users' money, a monopoly that cryptocurrencies and digital assets seek to break forever.
CBDC digital currencies are becoming a global trend, called to digitize national currencies and payments and to defend the monetary sovereignty of each nation. And although the European central entity has not finally decided whether or not to issue the crypto euro, several officials believe that it will finally decide to adopt this trend, although it will take a few months to consolidate the proposal and a few years for the initiative to really come to life. Republic Word estimates that by the middle of next year the ECB will decide whether or not to issue the new digital currency.
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