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October 3, 2022
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The digital euro will not be created as soon as it was thought –

The decision to bring the digital euro to market may not be made as quickly as previously thought. Financial authorities in Europe could develop a plan for the issue of the digital currency itself as early as 2021, but this does not mean any quick further action on this issue. At least this is the opinion of the director of the European Central Bank, Holger Neuhaus. He is also skeptical about the sudden issuance of e-euro to the markets.

Digital Euro

Holger Neuhaus, head of Market Innovation and Integration at the ECB, appeared at Singapore FinTech Festival 2020 December 7. During the event, he took part in a debate aimed at discussing the global development of central banks’ digital currencies (CBDC).

During the discussion, Neuhaus stated:

In mid-2021, the Eurosystem will consider whether to launch the digital euro project at all. Except – I must emphasize this – it would be a theoretical debate phase, not a decision on implementation [waluty na rynek]. In fact, it would let us […] come up with a real plan and define what the digital euro could be, what it could look like, how it could be implemented, if and when a political decision would be made. “

Neuhaus stressed that the digital euro will only complement, not replace cash or central bank deposits. He also noted that central bank digital money poses a major challenge when it comes to using it abroad, especially with regard to managing capital flows.

Debate in Europe

As for the idea of ​​CBDC in Europe, Neuhaus focused mainly on the ECB’s public consultation on the potential design of the digital euro. The consultation, which started mid-October 2020, aims to gather feedback from public and private stakeholders and assess whether Europe needs a digital euro at all.

In turn, in November 2020, the President of the ECB, Christine Lagarde, called on the bank to decide on the introduction of the digital euro as early as January 2021. She added that in her opinion the answer would be rather positive.

In turn, work in China has already moved from the theory phase to the testing phase in several cities. Russia also began to be interested in such projects.

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