European Central Bank has announced new currency E-Euro. Should Bitcoin Worry for it?
Now the european central bank is formally beginning a project to create a digital euro the plan aims to react to the growing popularity of cryptocurrencies and online payments. The ecb will now begin exploring exactly how it would work from a coin purse to a digital wallet an euro. Digital euro would be designed to operate like platforms and apps such as paypal and apple wallet and digital currencies like Bitcoin.
Credit : DW NEWS
This comes after the pandemic boosted online shopping and digital currency investments. Analysts say as consumers get used to making purchases online it’s important to have safe and easy digital currency. Soon and as more consumers will use it in the internet of things they will need that fast and smart money. That’s why we need a digital central bank owned and regulated the digital currency i.e the eurocoin.
Other central banks are already exploring options. England is researching its own central bank digital currency cheekily named the britcoin and the us and japan are also investigating so far. The ecb has promised that any future euro would be fast easy and secure and that services would be free. The payments could be made via card or smartphone. A lot of questions remain unanswered.
But there’s still time. Ecb officials say the
earliest an euro coin could roll out is 2026.
So let’s get more on this from conrad boson who’s in frankfurt for us and has got all of the details on this. So conrad is this going to be the eurozone’s answer to bitcoin or are we expecting something rather different than that i think. We have to expect something fundamentally different. You know bitcoin is completely decentralized and anonymous. You can transfer money from one point of this earth to another point of this earth without the people who transfer the money disclosing their identity.
It’s not likely that the digital euro would look like this. It will be relatively centralized the european central bank will have the control over it and it’s not likely that it’s going to be completely anonymous. The central bank wants to know who gets the digital euro because it also wants to have some sort of control over how the money is used. So there are going to be differences. But i have to say the details are not out yet and likely they will only come out during the next.
You know years while the digital euro will be designed and tested. Okay so in the next few minutes we’re expecting them more to announce a kind of a road map what are we expecting to come. If not, all of the details just yet well. What is being expected is that the ecb will announce the two-year design phase followed by a three-year test phase. This is what is going to happen with the euro and the the design phase. Of course will include many discussions with many stakeholders.
In this process with the banks with consumers with politicians etc. So that after this, these five years of you know designing
and testing the ecb can say here we are the digital euro is there. It’s a good product. We want to you know go to the market of international currencies with this. Okay it’s going to be very interesting.