Friday, December 3

The legal status of the digital euro should not be taken for granted, warns the ECB

Key facts:
  • The Central Bank of Russia states that a CBDC should be classified as legal tender.

  • If the digital euro becomes legal, it will have an advantage over other forms of electronic payments.

The Italian economist and member of the board of directors of the European Central Bank (ECB), Fabio Panetta, assured that “the legal tender status of the digital euro, the central bank digital currency initiative (CBDC), should not be taken for granted. ) of the block, although he did not rule out its possibility.

«It is a probable result, this will be examined in the next 24 months. However, achieving legal tender status should not be taken for granted. ‘ precise at a press conference last week.

According to Bloomberg, if the digital euro gets legal, will have a favorable advantage on other forms of electronic payments in the old continent, which are not currently recognized as legal tender and are not constantly available for consumers as a method of payment.

Indeed, if the Central Bank made its digital euro profitable as well as widely usable, there would be room for a more widespread adoption among the inhabitants of Europe.

Panetta had already rejected comments that the digital euro it would be a “redundant” project among the other virtual initiatives that exist and are used in that continent. In his view, the ECB will ensure that it is ‘attractive enough’ to promote their use.

In the same round, the governor of the Central Bank of Russia, Nabiúllina, stated that a digital currency must have the basis of legal tender, that is, “Be mandatory for traders.”

For her, it is important that there is a “perfect conversion” between the forms of money, something “crucial” for the trust of society “In this money.”

Fabio Panetta said that the European CBDC project is not redundant. Source: El País.

30 experts and two years to understand the digital euro

The digital euro is an advanced project in that continent, where 30 experts provide technical advice to the BDE for its launch, this, then the institution will study for up to two years everything concerning a CBDC.

According to what we reviewed in CriptoNoticias, the BDE has already appointed the members of the Market Advisory Group, where professionals, with extensive knowledge of the retail payments market, “They will act in their personal capacity from an industrial perspective.”

The ECB details that the mentioned group will be a representative of the European Commission (EC) and representatives of the national central banks of the Eurosystem. They will meet at least quarterly, beginning in November.

And it is not an unknown project for Europeans. In fact, the ECB has already collected comments from the inhabitants about this initiative, surveying more than 8,200 people in that sense.

One of the many CBDC

The digital euro, a project in full swing, is not the only digital currency. It is one of many, in fact. In the Bahamas there is already one, in full operation, llamada Sand Dollar.

Nigeria, in Africa, too: the eNaira. Similarly, China, with its yuan digital (right now in development). In the Caribbean, the countries Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia and Grenada; they also have their CBDC: DCash. AND Switzerland, for its part, studies the e-crown.

This denotes the movement of the European bloc and the entire world, focused on the acceptance of new technologies to negotiate and commercialize. But at the same time, is an attempt to slow the growth of cryptocurrencies, especially bitcoin (BTC), which is increasingly entering the world economy.

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