The European Central Bank (ECB) may roll out its own version of digital currency (digital euro) by 2026.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
During a speech at the National College of Ireland, ECB's executive board member Fabio Panetta said that the regulator could at the end of 2023 decide to start a "realization phase" to develop and test the appropriate technical solutions and business arrangements for a digital euro. According to Panetta's estimates, this phase "could take three years."
Panetta also stressed that digital euro would "fortify" European monetary sovereignty and provide a form of central bank money for making daily digital payments across the euro area:
"To succeed, a digital euro will need to add value for users, foster innovation, and enjoy strong political and societal support."
Panetta noted that the digital version of the euro would also allow European countries to protect their strategic autonomy while "remaining open in a world where technology and dependencies are increasingly being weaponized."
Earlier in April, the European Commission surveyed financial services professionals about their views on the possible introduction of a digital euro into the financial system. The European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union (FISMA) was responsible for examining the potential impact of central bank digital currencies on financial service providers, retailers and users.
The EC also said it would contact experts on international payments, privacy and the impact of the digital euro on the financial sector and financial stability.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange