For many of us it’s not good news, but digitization won’t stop at our money either. Driven by cryptocurrencies, central banks around the world are thinking about how to supplement or completely replace cash with electronic money.
In October the ECB started a two-year study phase of the “digital euro” project. In the summer of 2022 and in the spring of 2023, an evaluation is to be carried out to determine whether and how the digital euro meets user requirements.
If the green light is given, a three-year test phase begins before it is introduced in 2026. “The Council and Parliament have to approve the Commission’s proposal, and the infrastructure has to be built first. That takes time,” says Peter Kerstens, advisor to the EU Commission.
But there are a number of skeptical voices: Critics point to the risk that a digital currency would make commercial banks financially unstable because customers could transfer their money to a central bank account. This is one of the reasons why the EU Commission is considering an upper limit for stocks in the digital euro. Skeptics also warn of a collapse in the credit business and the risk of data being tapped.
In an international comparison, China is already well on the way to developing a digital currency. There is already the e-yuan there. The Chinese use it to pay for their purchases, buy bus tickets and donate to beggars. Sweden is testing the e-crown in Europe.
“The euro is a success story and should also gain a foothold in the digital world,” says Petia Niederländer from the Austrian National Bank. However, it is not about replacing cash, but about supplementing it. The digital euro is intended to “accelerate cross-border payments and strengthen the economy” for private users, small businesses and large corporations.
Source: Nachrichten
