The European Central Bank aka ECB has been making immense progress with regard to the development of the region’s central bank digital currency [CBDC] the digital euro.
The CBDC race was elevated, thanks to China’s fast-paced development. While China is way ahead in the game, other countries have jumped on the bandwagon. Even while the entire world remains hesitant towards the adoption of crypto, they seem to be going all-in on their CBDC development.
Developing a whole new payment system isn’t an easy task. The research involved in it is an extensive process. ECB seems to have come closer to launching its native CBDC. A recent report revealed that the digital euro was in its “investigation phase.”
ECB’s Digital Euro in the “investigation phase”
As per Bloomberg, Europe’s central bank went on to give a green signal to the investigation phase of the digital euro. While noting that the coming phase would go on for another 24 months. it affirmed that aspects like the design as well as distribution would be given importance.
Furthermore, the statement pointed out that the digital euro would only complement fiat and not replace it. The latest decision would reportedly “not prejudge any future decision on the possible issuance of a digital euro, which will come only later.”
Additionally. the President of the ECB, Christine Lagarde recently stated,
“It has been nine months since we published our report on a digital euro. In that time, we have carried out further analysis, sought input from citizens and professionals, and conducted some experiments, with encouraging results. All of this has led us to decide to move up a gear and start the digital euro project.”
Lagarde has been quite vocal about her interest in developing a CBDC. In addition to the existing advancements the ECB has been making towards the digital euro, it noted that the CBDC would be consuming way less energy as compared to Bitcoin [BTC].