The European Central Bank (ECB) will decide on Wednesday what it will do next with the digital euro. However, it is not yet the question whether banknotes and coins in the euro area will actually receive a digital addition, as Deutsche Bundesbank board member Burkhard Balz emphasized at the beginning of this week. The ECB Council will first decide whether to continue the project with a so-called preparatory phase.
Over the past two years, euro watchdogs have been examining the technology and data protection of a digital euro.
EU: “But don’t replace banknotes and coins”
According to the wishes of the European Commission, a digital euro should become legal tender, but should not replace banknotes and coins. Europe would then have its own digital payment offering as an alternative to payment service providers not based in Europe, such as the American giant PayPal.
Other central banks around the world are also working on digital central bank money. According to Balz, it could take at least four to five years before a digital euro is ready for the market.
Source: Krone
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