The European Central is intensifying it’s plan to launch a digital currency as the use of cash (fiat) declines, as China concludes pilot survey of it’s native e-yuan.
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The European Union apex bank announced a two years investigation period on Wednesday that will research on ” key issues regarding design and distribution” of a digital Euro and examine the probable result.
“Given the digital transformation under way, which has the potential to transform the payments landscape and even the entire financial system, central banks must be bold and keep up with the pace of change,” Fabio Panetta, a member of the ECB’s executive board, said in a blog post.
Explaining further that thee digital currency will coexist with cash. Europeans have option of paying using digital currency issued by European Central Bank or various national banks stored in a digital wallet.
Panetta said the central bank is targeting to start developing a digital euro once the survey period is over. That successive process “could take around three years,” putting Europe on track to potentially roll out a digital currency in 2026.
The central bank said that all the bothering questions needs to be answered before the launch. It also noted that the innovation worths looking into, ” to ensure that in digital age citizens and firms continue to have access to the safest form of money ” President, Christine Lagarde said in a statement.
The Euro is second worldwide accepted currency after the US dollar.