European Central Bank CEO: The European Union may start testing its digital currency CBDC in 2023

European Central Bank CEO: The European Union may start testing its digital currency CBDC in 2023

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Answer European Central Bank CEO: The European Union may start testing its digital currency CBDC in 2023

With the collapse of “TerraUSD” the largest algorithmic stablecoin in the Terra ecosystem and the depegging of other stablecoins such as Stasis, DEI (not to be confused with DAI and Tether), financial institutions such as the European Central Bank used this weakness to their advantage and began promoting central bank digital currencies their new.

Yesterday, May 16, Fabio Panetta, an Italian economist and member of the Executive Board of the European Central Bank, stated in a lecture at the National College of Ireland (NCI):

The European Central Bank is working to have a fully functional digital euro by 2026.

Read:Australian senator calls for urgent regulation of stablecoins and digital yuan

According to Panetta, the European Central Bank has been working on a preparation phase for the launch of the digital euro.

This phase will be completed in late 2023, which will allow EU member states to test the new CBDC currency over the next three years before it becomes available to the public.

The digital euro would boost the European economy:

Speaking during his speech, the Italian economist stated that the digital euro can boost the European economy when used as a legal currency among all the members of the European Union.

He also indicated that the European Central Bank and other institutions would help stimulate adoption through various tactics, including an intense advertising campaign.

Panetta added that as a central body, the ECB will ensure that cash remains available to all users even though only 20% of cash is used for payments today.

The same speaker explained:

The stats are significantly down from 35% of the cash usage that was in use fifteen years ago.

We will ensure that cash remains available.

But if the current trend continues, we may face a future in which cash loses its central role and ability to provide an effective anchor as consumers switch to digital payment methods.

Read:Report: Tornado Cash is responsible for 75% of Ethereum laundered

For this reason, Panetta pointed out that governments should not allow the marginalization of public funds, as this would negatively affect the economy and users, giving big tech companies an opportunity to use their positions and power to create an asymmetric playing field in which they can exercise control over the data of their customers.

Panetta argues that such a situation would threaten the monetary sovereignty of Europe and the world at large.

Central Bank Digital Coins: The Solution for Unstable Cryptocurrency

According to Panetta, the digital euro can help maintain confidence in fiat money by helping maintain its role as a monetary anchor in the digital age, a role that has been lost due to the wrong monetary policies implemented in different countries to try to protect the economy, and added:

The digital money issued by the central bank will provide the possibility for everyone to use public funds for digital payments.

Read:Bitcoin Arab announces the second episode of Ramadan evenings to learn the basics of technical analysis

It will be a sound and reliable means of payment designed for the common good.

It will maintain the coexistence of sovereign and private funds that have served us well thus far.

Additionally, Panetta noted that stablecoins are at risk and have no guarantee that they can be redeemed at any time.

He commented on what happened with the UST stablecoin Terra, which despite being one of the stablecoins with the highest market cap, has lost its correlation with the dollar.

Read also:

Bitcoin Rises Above $30K And UST From Terra Continues To Crash

Terra Founder Officially Suggests Splitting From The Original Project (Hard Forking) To Reboot!

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