The European Central Bank (ECB) is actively promoting the adoption of a digital euro, emphasizing its potential to enhance Europe’s competitiveness, strengthen the single market, and bolster European sovereignty. Piero Cipollone, a member of the ECB's executive committee, criticized the reliance on international payment systems like Visa and Mastercard, which he claims impose significant costs on businesses and consumers.
Cipollone highlighted the shift from cash to digital payments, cautioning against a future dominated by foreign platforms like Alipay. He argued that a home-grown digital payment solution could enhance Europe’s financial resilience and prevent dependence on external services. The digital euro aims to support small businesses, enabling them to negotiate better terms with payment providers and compete more effectively against larger firms.
Moreover, Cipollone stressed that the digital euro would promote financial inclusion, accessible to all euro area residents through mobile apps or physical cards. This inclusivity is designed to accommodate users of varying ages and technological proficiency. Data privacy is another priority, with the ECB ensuring that the digital euro project incorporates robust user privacy protections, aligning with current standards employed by major payment systems.
The ECB is currently finalizing the rulebook for the digital euro, having entered the investigation phase three years ago. Cipollone noted that collaboration is ongoing with various stakeholders, including consumers, retailers, and banks, to shape the digital euro's framework. The bank is also in the process of selecting partners to develop the necessary infrastructure.
An announcement regarding the next phase of the digital euro project is anticipated from the ECB’s governing council next year. This push for a digital currency coincides with recent criticisms from council member Fabio Panetta, who dismissed Bitcoin and Ethereum, asserting that these cryptocurrencies lack intrinsic value. As Europe moves toward a digital future, the digital euro could play a crucial role in the region’s economic landscape.
September 2024, Cryptoniteuae