The European Central Bank said it is launching a
two-year investigation on whether to introduce
a digital version of the euro that would
complement cash, taking a cautious step toward
introduction as central bankers around the
world eye digital currencies and their potential
impact on policy and the financial system.
The ECB said in a statement that the digital euro
must be able to meet consumers’ needs while
helping prevent illegal activity such as money
laundering and must not have an adverse impact
on financial stability and monetary policy.
Digitalization “is reaching all areas of our lives,”
Fabio Panetta, a member of the ECB’s executive
board, wrote in a blog post. “The coronavirus
(COVID-19) pandemic has shown just how fast
such change can happen. And this is affecting
the way we pay. We are increasingly buying
digitally and online.”EUROPE TAKES ANOTHER STEP TOWARD INTRODUCING DIGITAL EURO
Image: Ralph Orlowski