Digital Euro could come in 2026
The European Central Bank (ECB) could start the development and testing of a digital euro by the end of 2023. This was announced by Fabio Panetta, an executive board member of the ECB, during his speech at the National College of Ireland.
Then it may take the EU countries about three years to test the digital currency before its introduction into the financial system.
According to Panetta, the digital euro will have a positive effect on the European economy if all EU members use it as a legal tender. The ECB and other financing agencies will actively support the digital euro, as well as conduct a large promotional campaign.
Panetta also noted that the digital euro will help to maintain a stable and reliable basis for the creation of new financial and payment services, as well as guard the monetary sovereignty of the EU. The digital euro will become a secure and accessible payment instrument for everyone.
Earlier at a conference dedicated to the development of digital payments, Panetta said that the digital euro could be used when a complex economic situation occurs.
The economist also commented on the recent market volatility for cryptocurrencies. He believes that there are too many risks associated with cryptocurrencies, so they cannot act as a reliable means of payment. Stablecoins also cannot be called safe tools of investment. As an example, he cited the UST stablecoin, which recently lost its peg to the US dollar and its rate of exchange significantly dropped.
In order to develop and effectively test the digital euro, the ECB is going to work actively with all interested parties, such as banks and payment systems. The ECB will have to create a single payment solution which will allow all EU residents to use the digital euro without any problems.