The ECB’s Governing Council said the central bank took the decision following the completion of a study phase on a central bank digital currency (CBDC), which began in October 2021. The ECB has been exploring possible digital euro models and use cases. The next preparatory stage will begin on November 1, 2023 and will last about two years. The digital euro preparation phase will include developing rules for implementing the digital euro and selecting providers that could develop the platform and infrastructure for CBDC.
In two years, the ECB’s Governing Council will decide whether to move to another phase, to pave the way for a possible future digital euro issue and implementation. The government stablecoin will be available to individuals and businesses and will be distributed through controlled intermediaries – commercial banks. ECB Executive Board member Fabio Panetta noted that the digital euro will increase the efficiency of payments in the European Union and enhance Europe’s strategic independence in the payments sector.
ECB President Christine Lagarde added that the digital euro will be a digital form of cash that citizens can use for free to make payments. The digital euro must adhere to high standards of privacy and be used as an alternative to regular money, rather than being perceived as a competitor.
In May, Panetta assured that the central bank would not have access to the personal data of digital euro holders. As for regular stablecoins, Panetta sees them as a threat to the financial stability of the European Union.
Source: Bits
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