Digital euro to last at least five years

European central bankers prgnostizieren: Digital euro to last at least five years

The digitisation of the euro does not appear to be in any hurry, but this could change quickly in the face of increasing competition worldwide.

Several experts from various European banks agree that it could take Bitcoin Circuit scam another four or five years before there is even proof of concept for a digital euro.

In a panel discussion on Monday entitled „Upgrading Money to the Digital Age: Introducing Digital Euro“, participants agreed that the first task would be to familiarise everyone with the specificities of a digital euro. This will delay real implementation for a long time to come.

Digital central bank currencies, so-called CBDCs, have been a very popular topic of discussion in recent years, especially since the beginning of the COVID 19 pandemic.

Austėja Šostakaitė from the European Central Bank said that the ECB would not take a decision on whether it would seriously introduce a digital euro until mid 2021. This contradicts the forecast of the ECB President, who said that the time would come in January. For the time being, according to Šostakaitė, the question is: „How do we introduce the euro into the ecosystem and how does it work with commercial banks‘ money?

 Presentation from Austėja Šostakaitė for Upgrading Money to the Digital Age

Carl Andreas Claussen, an advisor to the Swedish Riksbank, said that the central bank will finalise a proof of concept for its e-Krown in February. But he also estimated that an actual launch would take „another four or five years“. Claussen said:

„There are some legal issues and this is such a big issue that we cannot decide on them. We need some political support. We suggested to the Parliament that it should set up a committee of experts to look into it“.

Sweden is a member of the European Union, but not of the euro zone. This means that the country continues to use its own currency. Cash consumption in Sweden is among the lowest in the world. This means that the country has made a certain leap in the digitisation of its currency. Claussen also indicated that he wanted to make cross-border payments possible. However, given the relative use of the euro or dollar, very few are made in krona.

With regard to the euro itself, Šostakaitė explained that external competition could speed up the existing timetable for development: „If we see foreign CBDCs or perhaps Facebook coming into the euro zone, this could speed things up“, she explained.

Facebook’s Libra is currently on track to be launched in January as a Stablecoin pegged to the US dollar.