The European Central Bank (ECB) revealed a few days ago that the specific timeline for the creation of the digital euro is already underway, with its launch potentially occurring in 2029.

This was stated by Piero Cipollone, member of the Executive Board, who emphasized that the purpose is “to offer an electronic version of the euro, with the aim of facilitating everyday transactions in the Eurozone.”

The official commented that “the European Parliament, the European Council, and the European Commission could have their respective positions ready by May 2026, after which they will begin working together on the legislation.”

The ECB entered the preparation phase for the digital currency at the end of 2023, which combines “technological development with the implementation of legal frameworks throughout the European Union, to ensure compliance with privacy and anti-money laundering regulations.”

In any case, the necessary regulatory framework must first be approved, after which the ECB will establish a period of between two and three years to effectively develop and launch the digital euro.

M.Pino

Source: cripto247

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La entrada Digital euro could be ready by 2029 apareció primero en Bitfinance.

Transforming euro banknotes into digital format is not a new idea. However, there are currently compelling reasons that are leading the European Central Bank (ECB) to accelerate the process toward a solution that safeguards the region’s economic sovereignty.

Two of the most notable reasons for accelerating the process of creating the digital euro are, on the one hand, the decline in cash use, and on the other, the adoption of foreign electronic payment tools, such as Visa and MasterCard.

Towards a digital monetary union

Last July, Piero Cipollone, a member of the ECB’s Executive Board, stated: “The role of cash will be significantly reduced if we do not offer a digital equivalent (…). A digital form of cash would protect our sovereignty and ensure that our monetary union is also a digital monetary union.”

However, for the digital euro to become a reality, there are still aspects to be analyzed, such as the legal framework for this format, the degree of anonymity, the relationship with commercial banks, and the limitations that will prevent it from replacing bank money.

Protection of cash

Throughout this process, the Eurozone does not intend to eliminate cash. On the contrary, it seeks to protect it, as it is included as the second proposal — after the digital euro — in the Single Currency Package launched in 2023, which proposes “safeguarding the role of cash and its acceptance as an accessible means of payment for individuals and businesses in the Eurozone (the regulation on the legal tender of cash).”

Thus, “the mandatory acceptance of banknotes is foreseen, albeit with some exceptions, and the need for a well-distributed banking infrastructure to guarantee their availability throughout the Eurozone.”

The measures adopted by the EU and the ECB are aimed at safeguarding the region’s financial sovereignty and protecting citizens, as well as democratizing access to money.

M.Pino

With information from FinanzasDigital and CincoDías

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La entrada ECB accelerates development of the digital euro apareció primero en Bitfinance.

The European Central Bank unveiled its new platform for payments using the digital euro. Around 70 entities are participating in the initiative, including banks, fintechs, startups, and payment service providers.

The ECB had been working on this project with the aim of “assessing its feasibility and functionality before its possible official implementation” for digital transactions in the eurozone.

Following the call for proposals for this application in October 2024, working groups were formed to analyze aspects such as automatic transactions, technical support, access to financial services for the unbanked, and the necessary digital devices.

One of the proposals they are considering is “the possibility of opening digital wallets in post offices, which would ensure that any citizen can use the digital euro without the need for traditional banking infrastructure.”

M.Pino

Source: iproup

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La entrada ECB launches platform for the use of digital euro apareció primero en Bitfinance.

The digital euro could see the light of day in October 2025. In the meantime, authorities are focused on two key issues: privacy and holding limits.

A second report published by the European Central Bank (ECB) details the progress of the “preparatory stage of the issuance of the digital euro.”

Of course, the regulatory body also continues to analyze aspects such as the harmonization of laws. “Following a review of the regulation in development for the digital euro, the Regulation Development Group launched seven lines of work with market participants and central banks that will continue its development.”

This regulation focuses on “harmonising national laws to ensure universal standards”. In parallel, research continues on “a user profile of the digital euro to identify the needs of potential users. This information will include user preferences on holding limits, which will be considered in technical research carried out with national central banks”.

The report highlights the importance of maintaining the euro as the European currency. In addition, the possibility of “payment service providers (PSP)” using the digital euro infrastructure to create new payment services.

M.Pino

Source: cointelegraph

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La entrada Digital euro developments focus on privacy and holding limits apareció primero en Bitfinance.

This Wednesday, the European Central Bank announced the start of the test phase for a possible digital euro starting next November 1.

Members of the ECB council indicated that with this preparation phase, aspects such as the necessary technologies and platforms, the regulatory framework, the providers and issuers of the digital euro, among others, will be investigated.

“After two years, the Governing Council will decide whether to move to the next stage of preparation, to pave the way for the possible future issuance and launch of a digital euro,” the ECB stated.

It is important to clarify that the beginning of the preparation phase does not mean that a digital currency will be issued. Nor is it a tool to decide whether to issue a digital euro, since it is the power of the Governing Council to make that decision “once the legislative process of the European Union has been completed.”

Since June of this year, the European entity has launched several initiatives related to this important decision. In any case, “the launch of any digital euro will likely attract the attention of regulators and legislators, who will have their elections for the European Parliament in June 2024.”

Regarding the crystallization of a digital asset in the community, 2026 is discussed as a possible scenario, after the relevant tests and studies.

M.Pino

Source: cointelegraph

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La entrada ECB will begin preparation phase for the digital euro apareció primero en Bitfinance.

François Villeroy de Galhau, Governor of the Banque de France, told commercial bankers that the digital euro presents benefits for all concerned. During the World Conference of Official Institutions organized by the French multinational bank BNP Paribas, he stated that disintermediation is not underway.

Before addressing the topic of central bank digital currency (CBDC) for Europe, Villeroy de Galhau explained the reasons why the banking crisis at the beginning of the year did not affect the eurozone. He credited European regulation and supervision with keeping the banking system safe. However, he noted that UBS’s acquisition of Credit Suisse raised new questions about reliable crisis resolution. He mentioned that a framework for the ECB to provide “Eurosystem resolution liquidity” still needs to be established.

Villeroy de Galhau adopted a more persuasive tone when entering the “less consensual terrain” of the digital euro. He posed the rhetorical question: “If everything is going digital, why should central bank money be the only thing that remains on paper?”

He went on to explain that the digital euro would be a digital ticket, or “Cash+”. Its use would be optional, but would have the advantage of allowing the use of central bank money in electronic commerce transactions. Without him, he warned that sooner or later a crisis of confidence would arise. However, Villeroy de Galhau stressed that the digital euro would not lead to disintermediation, as central banks have no intention of opening private accounts.

The Governor of the Banque de France also highlighted that the wholesale CBDC would be a joint venture between commercial and central banks. They would share goals to encourage tokenized finance and securities, as well as facilitate cross-border interoperability.

He claimed that the digital euro would not be a competitor for commercial bank money and would help resist the advance of stablecoins, likely issued by non-European players. To the contrary, Villeroy de Galhau stated: “Our duty will most likely be to issue a CBDC, but our will is to issue it together with you, the commercial banks, and not against you.”

K. Tovar

Source: Banque-France

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La entrada French expert assures that the Digital Euro is a necessity apareció primero en Bitfinance.

The majority of citizens in Germany are skeptical of the plans of the European Central Bank (ECB) to create the digital euro and consider that it is not necessary, according to a survey released this Saturday.

76 % of the people who participated in the survey carried out by the Association of German Banks (BdB) responded that they were “very” or “quite” in agreement with the statement that the digital euro was not necessary because of the existing payment options they were perfectly adequate. However, less than a third, 29 %, said they actually had an idea of ​​how a digital version of the common European Union (EU) currency could be created and what the digital euro could be used for.

The deputy director general of the BdB, Henriette Peucker, considered it important for the ECB to explain to the people about the issue. “What should a digital euro look like? What advantages does it bring, but also what risks? The Central Bank must answer these central questions so that the project reaches the center of society,” Peucker said.

The monetary guardians of the euro have been analyzing the possibility of introducing a digital version of the common European currency for some time, in response to the strong rise of so-called cryptocurrencies such as Bitcoin or Ether. The ECB agreed in mid-July 2021 to take the groundwork to the next level. In a two-year research phase, from October 2021 the focus is on technology and data protection.

It has not yet been decided whether there will be a digital euro. In any case, the digital euro should complement cash and not replace it. The introduction of the digital euro is not expected until 2026, at the earliest. “The digital euro can only succeed if it is accepted and used by the European population. As long as its usefulness and risks remain unclear, the project will remain uncertain and consumers will continue to use the digital payment methods they already know and use trust,” Peucker estimated.

Source: dpa

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La entrada Most Germans are skeptical about the creation of the digital euro apareció primero en Bitfinance.

Fabio Panetta, member of the executive board of the European Central Bank (ECB) and one of the officials with the greatest knowledge about the digital currency project, pointed out that the digital euro could be released on the market by 2026 and by 2023 it is planned initial phase of development and testing planned for three years.

According to what Panetta expressed in his intervention at the National College of Ireland, by the end of 2023 we could decide to start a realization phase to develop and test the appropriate technical solutions and commercial arrangements necessary to provide a digital euro. This phase could last three years.

The official said that the purpose of the ECB is to create a legal tender currency from the digital euro and promote its adoption in retail payment services. Developing a P2P payment solution aimed at an important group of users in the euro zone will allow the acceptance of the digital euro.

Research shows that new payment methods “are more easily adopted in a single market segment, such as P2P payments, before spreading to other use cases.”

The uncertainty of digital currencies

The representative of the executive board of the European Central Bank also referred to the uncertainty and disproportionate decline that the crypto market has experienced in recent days, especially the Terra stablecoin (UST). And highlighted that digital currencies related to currencies of the traditional market also have their risks and their vulnerability to runs is quite high.

During the speech at the National College of Ireland, Panetta confirmed his disagreement with cryptocurrencies for considering them volatile and risky currencies: “They are too risky to act as a reliable means of payment (…). They behave more like speculative assets and raise multiple policy concerns and financial stability”, he expressed.

M Rodríguez

Source: crypto247.com

La entrada Europe will launch a pilot test of the digital euro in 2023 apareció primero en Bitfinance.

ECB President Christine Lagarde recently pointed out that raising interest rates too quickly would stifle the Eurozone’s recovery. “Raising the main interest rate of the European Central Bank now would not reduce the historically high levels of inflation in the Eurozone and would only harm its economy.”

Lagarde stressed that the ECB will only withdraw its aggressive negative interest rate stimulus policy gradually and when conditions allow it because that would not solve any of the current economic problems, on the contrary, from his point of view, that could exacerbate the economic situation.

“That would not solve any of the current problems (…) On the contrary: if we act too hastily now, the recovery of our economies could be considerably weaker and employment would be put in danger. (…) Now we can adjust, calmly, step by step, our monetary policy instruments (…) and when the economic data allows it, we will do it”, the president of the ECB insisted.

Bond market in fall

Lagarde’s statements have had a significant impact on the financial market, specifically on the bond market, which plummeted “by opening the door to the ECB’s first rate hike in more than a decade, given the persistent upward pressure on prices.

Money markets were expecting a 50 basis point hike in the ECB’s deposit rate last December, but Lagarde is now signaling that a hike would not end high oil prices and supply problems that have fueled inflation.

The euro zone registered an inflation of the order of 5.1 % and the European Commission indicated that it estimates an inflation for this year of 3.5 %, well above 2 % established as a target by the ECB.

The European financial entity had declared in December that it would continue buying bonds to stimulate the decline in inflation at least until October this year and will only raise rates once these purchases are completed. However, it is very likely that it will change the line in March when its next monetary policy meeting takes place.

Currently its ECB interest rate on bank deposits stands at -0.5 %. ECB Chief Economist Philip Lane, who is responsible for monetary policy proposals, has been more cautious, saying the current situation does not warrant significant tightening.

M. Rodriguez

Source: publico.es

La entrada ECB will continue with its economic stimulus policy apareció primero en Bitfinance.

The European Commission continues to work on the development of the digital euro and they estimate to finalize a first prototype of their digital currency by the end of this year. But the commission plans to launch it on the market, regulated and official, by 2025 when it will compete with the Chinese cryptocurrency and the one that the United States is developing.

The countries of the world are working and joining efforts to work on a digital version of their fiat currencies. Thus, it is estimated that the dollar, the yuan and the euro will have their digital version.

The popularity of cryptocurrencies and the growing interest from traditional banks and institutions have set off alarm in central banks, which have been working for some time to create these digital versions of their own currencies.

Public and regulated digital currencies

The Eurozone is very clear about the importance of having a digital euro and the European Central Bank is immersed in this effort, which is why it is carrying out internal tests to finalize the project.

The director of the European Central Bank (ECB), Christine Lagarde, announced last July 2021 that approximately 80 central banks were interested in the creation of cryptocurrencies and one of them was the ECB, which initiated the conceptualization of the project in October of last year.

Currently, the European Commission is preparing the legislation that will regulate the digital euro and those responsible estimate that it will be completed by the beginning of 2023. At this time, the planning carried out seems to be very good because during the legislative process of the European Union, “the negotiations with the Member States and also in the European Parliament before finally becoming law”.

Some representatives of the ECB explained that the digital euro “would complement cash, it does not come to replace it”. But it would also become a solution to the attractiveness of cryptocurrencies such as Bitcoin or Ethereum which, despite not being used as currencies for buying and selling everyday goods and services already have derivative or alternative cryptocurrencies that are positioning themselves in that market segment.

Public consultation for the digital euro

The European Union plans to carry out a public consultation process, within a few weeks, in order to reaffirm the use that European citizens will give to the digital euro, as recently reported by the EU’s financial director, Mairead McGuinness, at an event about FinTech.

Once the public consultation has been carried out, it is planned to carry out an assessment on the impact that the digital euro could have on a potential destabilization of the financial system, since it could affect the liquidity of private banks if people convert all their money into the currency regulated and managed by the ECB.

M. Rodríguez

Source: xataka.com

La entrada The European Union estimates to launch its digital currency in 2025 apareció primero en Bitfinance.