“Digital Euro and CBDC: How Central Banks are preparing for the Future”
Central Banks Worldwide Focusing on Digital Currencies
Central banks around the world are increasingly paying attention to the introduction of innovative payment methods in the form of digital currencies, known as Central Bank Digital Currencies (CBDCs). These modern forms of payment aim to facilitate both retail and commercial transactions in financial markets.
European Readiness for Digital Euro
According to a study conducted by the Centre for European Policy Studies | Paris (CEPS), Europe is not yet ready to introduce the digital euro. China and Nigeria already have operational CBDCs for retail payments, while for economically more complex regions such as the eurozone or the USA, it would be too premature.
Development of Digital Euro Approved by ECB
The European Central Bank (ECB) greenlit the development of the digital euro in July of last year. Central banks are responding to changes in the world of finance, such as the increasing popularity of cryptocurrencies, digital payments, the decrease in cash usage, and heightened geopolitical tensions, by introducing CBDCs to safeguard currencies.
Expectations and Challenges Associated with the Digital Euro
Despite plans to introduce the digital euro, European consumers express strong opposition to such a form of payment, preferring traditional means. However, the ECB must be prepared for the eventual introduction of the digital euro within the next decade.
The digital euro should not hinder innovation in the private sector, but rather support and enable its development. The Director of the Centre for European Policy Studies | Paris calls for support for a CBDC system that will facilitate large-scale payments between financial institutions.
In conclusion, central digital currencies are becoming increasingly popular worldwide, and Europe is slowly preparing for the potential introduction of the digital euro, responding to changes in the field of finance and payments.
