Fabio Panetta, a member of the European Central Bank’s executive board, has announced that the digital euro is expected to be launched within the next three to four years, coinciding with the bank’s 25th anniversary.
According to Panetta, who spoke with Les Echos, a team of 50 individuals is currently dedicated to the digital euro project. They are actively examining various aspects such as the design, distribution, and potential effects on the financial sector.
Furthermore, following the completion of a legislative proposal in June of this year, the Governing Council plans to initiate a testing phase for the central bank digital currency (CBDC). The executive board member of the bank stated that this phase could extend for a duration of two to three years.
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Fabio Panetta stressed the importance of having a central bank digital currency (CBDC) to ensure the stability of the financial system. He emphasized the need for central bank money to remain at the core of the financial system.
Additionally, Panetta mentioned that the European Central Bank (ECB) will not access personal data while working to prevent activities like money laundering and terrorist financing.
Moreover, Panetta explained that while the European Central Bank (ECB) will be responsible for developing the digital euro, the distribution aspect will be handled by other banks. He clarified that the central bank lacks expertise in customer dealings and it would be impractical for them to engage in that aspect of the business.
Panetta’s statements come shortly after the European Union (EU) approved the Markets in Crypto-Assets (MiCA) bill, which was initially proposed three years ago. He previously mentioned that the digital euro is not intended to replace physical banknotes as long as there is still demand for cash.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.