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Former Eurogroup Official Claims Future Of Digital Euro Is Not Certain Finance Bitcoin News

Former Eurogroup official says the future of the digital euro is “not clear yet.” Europe’s digital currency project has made some headway recently, with the Eurozone’s central bank moving to the next step.
If bitcoin is used as a standard, critics object to the lack of clarity surrounding the design and purpose of the digital euro following a decade-long wait.
A week after the European Central Bank (ECB) chose to move through with its proposal to develop a digital version of the euro, experts have expressed concerns about the currency’s uncertain future.
On July 14, the European Central Bank’s Governing Council approved the start of the project’s next phase, the “research phase,” which will run 24 months and address significant design and distribution challenges.
“The outcome is not apparent yet and might not be for a long time,” says Hugo Coelho, a former chief of staff to Eurogroup President Mario Centeno and a partner at Forefront. “The outcome is not clear yet and might not be for a long time.”
Coelho elaborated to Euractiv: “For the time being, the digital euro remains flagrantly ill-defined…”
It’s possible that the first iteration of the digital euro may feel like a prepaid card and have little impact on our daily lives, but this could alter with time.
The digital euro is designed to reflect euro notes and coins in computer form, according to what we know so far.
It will, however, be stored directly in accounts issued by the ECB, rather than at commercial banks, unlike current bank money.
The central bank aims to utilize it as an additional payment method, but has indicated that it is not intended to replace regular currency.
The ECB is Losing to Cryptocurrencies and Stablecoins By default, the digital euro should be safer than the private banking system, according to Euractiv, because a commercial bank may go bankrupt, which is a remote but actual risk.
“The ECB is the ultimate assurance in the collective imagination,” Karl Toussaint du Wast, co-founder of Netinvestissement, told the publication.
Furthermore, the CBDC is planned to be free to use, with payments made using an ECB-issued card or a smartphone application.
Last week, ECB President Christine Lagarde declared that “encouraging results” from the study and trials undertaken over the previous nine months had led the central bank to “decide to go up a gear and start the digital euro project.” Toussaint du Wast branded the action as “desperate and hopeless,” emphasizing: “The ECB has lost the game.”
10 years ahead of the curve in terms of innovation and growth potential of blockchain-based projects, including cryptos.
The European Central Bank’s goal to maintain currency sovereignty is one of the key drivers driving the digital euro project, according to Euractiv, and the ECB isn’t about to acknowledge defeat.
Stablecoins backed by fiat currencies such as the US dollar are a viable option in this situation.
According to Toussaint du Wast, the dollar and the euro are the “first enemies” of the digital euro.
According to all indicators, the euro’s electronic embodiment will follow Facebook’s “diem” coin, for example.
The ECB requested veto powers over the launch of such stablecoins in the Eurozone earlier this year, citing the necessity to maintain inflation control and payment security in the single currency area.
Do you believe the digital euro will be able to compete effectively against stablecoins and cryptocurrencies?
Let us know what you think in the comments area below.
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