Europe will launch a pilot test of the digital euro in 2023

The Central Bank of Europe is working on the digital euro and plans to launch a three-year pilot test by the end of 2023

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


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