ECB ramps up efforts for the development of a digital euro

The European Central Bank (ECB) has published a report on the possible issuance of a digital euro. This report, prepared by the Eurosystem High-Level Task Force on central bank digital currency (CBDC), highlights the need for the Eurosystem to be prepared for a potential decision to introduce a digital euro in the future. A digital euro would be an electronic form of central bank money that citizens and firms could use for their daily payments. It would complement cash rather than replace it. The ECB aims to secure trust in money and ensure that the euro is fit for the digital age. The task force identified several scenarios that would require the issuance of a digital euro, such as increased demand for electronic payments, decline in cash usage, and the launch of global private means of payment. The ECB will engage with various stakeholders through a public consultation and experimentation process to assess their needs and expectations regarding a digital euro. The Governing Council has not made a final decision on whether to introduce a digital euro yet.

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