European Central Bank takes a step closer to introducing digital euro

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European Central Bank takes a step closer to introducing digital euro

In context of a rising consumers’ trend to capitalize on cashless ways to purchase a swathe of paraphernalia ranging from retail products to household items to child’s playthings, the European Central Bank had issued a statement late on Friday saying that the Frankfurt-based Central Bank of eurozone ought to be prepared to introduce a digital currency, should a changing world require it, cementing the ways to ventilate to issuing a digital version of the bloc’s common currency.

In point of fact, the European Central Bank had released a comprehensive report on Friday aimed at outlining the reasons behind its decision to usher in such kind of transformational steps, while the ECB report had also added that the Frankfurt-based eurozone Central Bank that issues euro, would also assemble a number of public consultations regarding its concept to launch a digital version of euro.

Nonetheless, the ECB report was also quoted saying that the policymakers had yet to take a solid decision and if implemented, a digital euro would be backed by hard-cash, while the ECB consultations with selective citizens, academics and bankers would begin as early as by October 12.

Digital euro will be risk-free & less expensive, claims ECB Chair Lagarde

Meanwhile, citing a digital euro would not be a counterpart of current cashless payment systems, instead it would act as a digital edition of Central Bank money, ECB President Christine Lagarde said followed by the release of ECB report on Friday, “The euro belongs to Europeans and our mission is to be its guardian.

Europeans are increasingly turning to digital in the ways they spend, save and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.

Notably, ECB had not been the lone ranger which has been burning its midnight oil lately over a digital euro, while the Central Bank of China has already introduced a digital currency and the Swiss Central Bank had initiated a pilot project earlier this year.