Crypto: The digital euro reaches a new milestone!

The e-euro, the ECB digital currency intended to compete with cryptocurrencies, will be released by the end of 2025, Christine Lagarde argued during a visit to Parliament last September. Apparently, his team will accelerate the advent of this asset long awaited by certain European bankers. The latest news confirms that the European Central Bank will not let go of this matter until the digital euro sees the light of day.

Europe’s CBDC in the preparation phase

Unlike Russia, with the digital ruble, and China, issuer of the e-CNY, both being at a very advanced stage with their respective CBDCs, Europe has chosen not to hurry. According to the President of the ECB, Christine Lagarde, we will have to wait at least 2 years to see the e-euro arrive.

In a statement published yesterday on the official website of the European Central Bank, we have taken these few introductory sentences.

“ The Governing Council of the European Central Bank (ECB) today decided to move to the next phase of the digital euro project: the preparation phase. This decision follows the completion of the investigation phase launched by the Eurosystem in October 2021 to explore possible models for the design and distribution of a digital euro. »

CryptoGlobe, which summarized this news, specified that the e-euro will be made available to Europeans, citizens and businesses included, via regulated financial institutions such as banks. The crypto media also mentioned its attention to get rid of fiatas Australia did, based on this digital money.

Note that the ECB’s MNBC will be good for online and offline transactions in the euro zone. However, for the moment, the infrastructure adapted to this initiative is lacking at this financial institution.

“ The next phase of the digital euro project – the preparation phase – will begin on 1^er November 2023 and will initially last two years. This will involve finalizing the regulation of the digital euro and selecting suppliers likely to develop a platform and infrastructure for the digital euro. It will also include testing and experimentation to develop a digital euro that meets both Eurosystem requirements and user needs, for example in terms of user experience, privacy, financial inclusion and footprint environmental », continued the ECB spokesperson.

A CBDC after crypto regulation?

If China and the United States are struggling to establish appropriate regulations for crypto, Europe has developed a clear legal framework known as “ MiCa standards ” in June. By reaching this milestone, the EU is sending a very strong message to other governments and cryptocurrency enthusiasts: create an environment conducive to the development of players in this sector and not sacrifice related technological innovations. Fans of crypto like bitcoin and ether breathed a sigh of relief.

As for the European CBDC, the ECB does not guarantee 100% that this preparation phase will result in its issuance. The European Parliament and the Governing Council have their final say as to its deployment (or not) at the level of the 27.

Also, it should be expected that the digital euro could be subject to revision (partial or complete) after evaluation.

“ We must prepare our currency for the future. We envision a digital euro as a digital form of cash that can be used for all digital payments free of charge and meets the highest privacy standards. It would coexist with cashwho would always be available and leave no one behind », argued Christine Lagarde, number 1 of the ECB.

An opinion shared by Fabio Panetta, member of the ECB executive board, who stated that:

“ As people increasingly choose to pay digitally, we should be prepared to issue a digital euro alongside cash. A digital euro would increase the efficiency of European payments and contribute to Europe’s strategic autonomy “.

But a question arises: are Europeans ready to adopt the digital euro? Nigerians, for example, did not approve of their central bank’s CBDC called e-Naira.