L ‘Euro Digital It could actually arrive at the end of the year, with the first phase of testing for e-money for the European Central Bank scheduled for the spring. The characteristics of the new currency are not yet clear, but from last year’s ECB report, it is possible to make some assumptions. First of all, it is made clear that it will not act like other cryptocurrencies, but will support the material euro in the operations of citizens, companies and institutions.
Toward a Digital Euro: What are the Advantages
You may not need to have a Bill in the bankHowever, downloading an app on your smartphone or using a prepaid e-wallet may suffice.
Among the advantages of the new cryptocurrency could be the strengthening of funds distribution mechanisms implemented by the monetary policies of the European Union. With the digital euro, the need for banks like Brokers Between the European Central Bank, families and businesses in the event Money exchange Based on a decision from the committee.
The ways you intended can still be simplified Bonus Government, While also bearing in mind that payments can be more easily scheduled in digital and instant form. However, private credit institutions will continue to engage in custody and management services.
Toward a Digital Euro: What are the Risks
Bringing the digital euro into the system is no easy task, and Europe will necessarily have to set limits to prevent abuse of this new form of payment and to ensure that the economy is not harmed. First of all, avoid over-digitizing the actual currency and minimizing deposits from the European Central Bank, or the “raw material” that is Loans.
It will also be necessary to protect all existing forms of payment, perhaps by enforcement border From spending and deposits for digital euros, such as those already saved in cash.
The digital currency is also for China and the United States of America
Europe is not alone in the trend of adopting a digital currency. From the Federal Reserve came the green light for Digital dollar, Although it is likely that the United States Congress will have to authorize their use. Jerome Powell, President of the US Central Bank, announced that 2021 will be an important year for the digital currency made in the United States.
On the other hand, China has already started pilot projects in four cities with the use of Renminbi Digital. The electronic yuan may have become a reality by the time the Beijing Winter Olympics are held in 2022.