ECB to Decide Whether to Issue Digital Euro in 2023
ECB to Decide Whether to Issue Digital Euro in 2023
The European Central Bank (ECB) has published a new report on the progress of its investigation into the possible launch of a digital euro. The research will continue next year with the regulator planning to make a decision whether to proceed to the realization of the project in the fall of 2023. ECB to Develop Rules for Digital Euro Distribution Through Intermediaries
The eurozone’s central bank has released a second report on the advance of the investigation phase of its project to issue a digital version of the common European currency. The document presents a set of design and distribution options, recently endorsed by its Governing Council, and defines the roles of the ECB and market participants in the digital euro ecosystem.
Just like banknotes today, a digital euro would be a liability on the balance sheet of the Eurosystem, the monetary authority of the eurozone consisting of the ECB and the national central banks of the member states. Therefore, the Eurosystem must be in full control over the digital euro issuance and settlement, the regulator explains.
Supervised intermediaries, such as credit institutions and payment service providers, will distribute the digital euro to end users — individuals, merchants, and businesses — open digital euro wallets, process payments and provide other related services. Conducting know-your-customer and anti-money laundering checks will be part of their responsibilities, too. The ECB also emphasizes: Paying in digital euro should always be an option, irrespective of the entity with which end users open digital euro accounts or wallets and of their country of origin.
Further, the European Central Bank assures that the design of the digital euro would minimize its involvement in the processing of user data. “The Eurosystem would not be able to infer how much digital euro any individual end user holds nor to infer end users’ payment patterns,” the monetary authority elaborated.
The investigation phase of the digital euro project was launched in 2021. The ECB issued its first progress report in September, 2022. Work on a rulebook for the distribution scheme should begin in January. The central bank’s Governing Council will review the results of the research in the fall of 2023 and decide whether to proceed to a realization phase, an announcement detailed. Tags in this story CBDC, Central Bank, Digital Currency, digital euro, Distribution, ECB, Euro, European Central Bank, Eurosystem, Eurozone, intermediaries, investigation phase, Payments, progress, project, report, service providers, Services, users, Wallets
Do you think the ECB will decide to issue a digital euro next year? Share your expectations in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Rate Hikes Needed to Reduce Eurozone Inflation Despite Recession, Top ECB Official Says FINANCE | 2 days ago Bank of Russia to Test International Crypto Payments With Companies FINANCE | 4 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons, Yavuz Meyveci / Shutterstock.com Previous articleRussian Parliament Postpones Adoption of Crypto Mining Bill Next articleLocker Token and Euro Ice Hockey Champs Rögle BK To Host In-Person NFT Event Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse