A blog post has been published by the Executive Board member of the European Central Bank (ECB) Fabio Panetta who says that Europe now should be prepared for releasing a digital euro.
According to Panetta, a comprehensive report on the digital euro has been published by the European Central Bank where they have highlighted the importance and need for a digital euro in the country for people.
Digital Euro would compliment cash, not replace it
ECB’s report on the digital euro is a 50-page report and the Eurosystem High-Level Task Force prepared it. The report says that the implementation of a digital euro in the country does not mean that it will replace cash rather it would compliment the cash in the country. They will offer a lot of advantages to people together if they both are available in the country at the same time. People will have a greater choice and they can access means of payments easily in the presence of cash as well as the digital euro.
Focused on highlighting the need for issuing a digital euro, the report stated:
“We should be ready to issue a digital euro if and when developments around us make it necessary. This means that we already need to be preparing for it. In the coming months, we will listen and experiment so that we are in a position to take a fully informed decision on the possible development and launch of a digital euro.”
The European Central Bank pointed out different scenarios where the issuance of a digital currency becomes critical. These include the growing interest in electronic payments, foreign central banks’ accelerating efforts for issuing CBDC, and the declining use of the cash which is decreasing with the passage of time.
Fabio Panetta said in the blog post that the acceptance of a digital euro by people is really crucial. We should pay heed to the needs and concerns of people about the digital euro. According to Fabio Panetta, the report ‘forms the basis of public consultation’ and it will be made available to people on October 12 in order to find out the differing views of the public regarding this.
Christina Lagarde, the President of the ECB also emphasized the fact that Europe needs to be prepared for launching a digital euro saying, “the euro belongs to Europeans and we are its guardian”.