Eurosystem launches digital euro project
Following exploratory experimentation, analysis and consultation, the Governing Council of the European Central Bank (ECB) has announced its decision to launch a digital euro project, to begin with a two-year investigation phase.
“Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money,” said ECB President Christine Lagarde.
For the ECB, a digital euro must be able to meet the needs of Europeans while at the same time helping to prevent illicit activities and avoiding any undesirable impact on financial stability and monetary policy. It affirms that the investigation phase will not prejudge any future decision on issuance of a digital euro, but will address a range of key issues and possibilities. In the first place, it will focus on a functional design that is based on user requirements and meets the overall objectives of the digital euro. That is, the new approach to money must be riskless, accessible and efficient. Technical work with the European Commission will be intensified. The project will examine potential changes to the EU legislative framework that might be needed, and assess the possible impacts of a digital euro on the market.
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