The European Central Bank (ECB) has announced that its project to develop a digital form of the euro is progressing to the preparation phase. The ECB aims to prepare the currency for the future, although a final decision on issuing a digital euro has not yet been made. The preparation phase will involve finalizing the digital euro rulebook, selecting providers to build the technical infrastructure, and conducting testing and engagement with the public and stakeholders. The phase will begin in November and last for two years. The ECB highlights that a digital euro could be used for all digital payments, alongside physical cash, and would offer low costs, high privacy, and instant settlement. The bank also addresses concerns around privacy, stating that a digital euro would provide “cash-like privacy” and prioritize data protection. The ECB is exploring both centralized and decentralized systems, including distributed ledger technologies (DLT), for the digital euro. However, it clarifies that a digital euro would not be considered a cryptocurrency as it would be backed by a central entity. The ECB’s Governing Council will make a decision on issuing a digital euro after the completion of the European Union’s legislative process.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Christine Lagarde |
| Companies | European Central Bank, European Union, Eurosystem |
| Currencies | None |
| Securities | None |
