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Estonian Central Bank Claims Digital Euro Can Handle Almost Limitless Payments After Test Fintech Bitcoin News

Following a recent trial, the central bank of Estonia found that a blockchain-based digital euro would be highly scalable, allowing it to execute an almost infinite amount of payments.
The test, which claimed to show that digital currency has a lower carbon footprint than card payments, included central banks from several euro area countries including the ECB.
300,000 Payments Per Second Completed During Digital Euro Experiment An experiment conducted as part of the digital euro project’s recently opened ‘Investigation Phase’ has found that a blockchain-based solution for the electronic form of Europe’s common currency could theoretically allow an “nearly infinite” number of simultaneous payments.
The device would also achieve a “excellent balance” between maintaining privacy and passing anti-money laundering regulations, according to the test.
The Estonian central bank applauded the test results in a statement posted on its website.
Eesti Pank, along with counterparts from seven other Eurozone member states — Spain, Germany, Italy, Greece, Ireland, Latvia, and the Netherlands — as well as the European Central Bank (ECB) — took part in the experiment.
The ECB’s Governing Council gave the green light to further preparations for the digital euro in mid-July, but a final decision on its implementation has yet to be made.
The trial’s goal was to see if there was a technical solution for a central bank digital currency (CBDC).
Payments in digital money were conducted between people with digital identities from Estonia, Latvia, Lithuania, and Spain during the experiment, according to Eesti Pank.
The tested digital euro system was capable of processing over 300,000 payment transactions per second and delivering monies to recipients in less than two seconds.
The network’s estimated carbon footprint was found to be lower than that of the present card payment system, according to the Estonian regulator.
Experts have been able to overcome some of the bottlenecks reported previously, according to Eesti Pank. Europe’s Digital Currency System Sets No Limitations on Money Supply
The experiment showed that, due to the excellent scalability of the blockchain technology used, the number of digital euro payments may simply be raised if necessary.
The central bank further stated that the “revolutionary” technology does not put “any essential constraints” on the amount of the money supply, adding that the system is capable of handling the whole supply of euros in circulation and more, and that there are no limits on the number of money-holders or simultaneous payments.
As part of the project’s Investigation Phase, more trials will be conducted, and Eesti Pank intends to continue participating.
The ECB aims to draw in more banks and payment service providers, and it plans to run a series of user surveys to look into the various options for producing a digital euro.
Financial authorities will also seek to determine the technical infrastructure that the Eurozone’s digital currency will require during this stage, which is projected to span roughly 24 months.
What are your thoughts on Eesti Pank’s announcement of the digital euro test results?
In the comments box below, please share your thoughts on the CBDC initiative.
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