ECB Takes a Giant Leap Toward a Digital Currency
As discussed previously, the ECB is in the midst of forward-thinking discussions revolving around the emergence of a digital currency. Creating a digital Euro can revolutionize and set a bar for future progressive change throughout the rest of the world.
In mid-July the ECB made groundbreaking statements, announcing that the regulatory authority is moving into the next phase of research into the design and distribution of the digital Euro project. This means that the authorities must research and securely develop standards into other aspects we have discussed such as possible security concerns, limited access for ones without internet, etc.
After the world entered a hard lockdown and the use of cash became scarce due to the COVID-19 pandemic, this gave the ECB yet another reason throughout their preliminary research to take another big leap toward issuing digital Euro.
Here is what we know:
- The next phase into the possible birth of a digital currency is the Investigative phase and should last 24 months
- There were no technical obstacles identified during the Preliminary/Experimental phase
- The design presented will revolve around users preference and experience by both the user, merchants, and intermediaries
- Preliminary research showed that the existing digital infrastructure for Eurosystem instant payments could be scaled up
Furthermore, its thought-provoking to note that a digital euro would enable users to make purchases across all outlets and countries in the euro area, possibly reducing the cost of transactions, and foster financial inclusions by aiming to make digital payments accessible to those who don’t have access to financial services as cited by the regulator. Does bringing a digital Euro in the mix boost forex trading?
Many are confident that the ECB is taking this process at the right pace, asking the right questions and implementing important standards before the possible production of a digital euro. If this is not properly designed, an innovative currency such as this, can become a source of disruption for our financial systems, economies, and societies.
Digitalization has spread to every corner of our lives, the question now is not whether or not the world is ready for a digital currency revolution, but what are the effects and how it would possibly impact other areas of the global economic environment.