On January 19, 2021, Banque de France carried out its first digital euro transaction. forwarded by ThecointribuneThis operation, using the European Central Bank (MNBC) digital currency, was carried out in collaboration with the ECB and the SETL blockchain.
Following a public consultation on Euro Digital launched in October 2020, the European Central Bank is questioning the creation of its own digital currency. The installation of a digital euro is now essential and Europe must be ready for it now Introduce your MNBC as soon as it becomes necessary.
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With the health crisis, the dematerialization of trade is becoming more widespread. The digital currency will soon replace cash. Since the end of last year, the President of the ECB, Christine Lagarde, confirmed her wish to include Europe in this important turning point. However, it is reliant on diffusion in 2026.
An economic and health context that accelerates digitization
2020 was a real change in the way we consume. The health crisis, the return to teleworking and the multiple containment plans have made us buy differently. In this changing context, the European Central Bank is strongly considering switching to Euro Digital. A new currency could finally coexist with our usual fiat money (coins and banknotes).
The decline in the use of “physical” money is now encouraging Europe to embark on the path of China in the midst of its digital yuan launch. The challenge now is to analyze and understand how the European digital currency can facilitate daily consumption by consumers without disrupting the financial equilibrium of the entire Eurosystem.
A slow but careful digitization of the currency
The ECB’s digital will does not rhyme with “hurry”. Europe and its allies are taking the time to create and install their digital euro.
Like China and Ukraine, who are the first in the world to launch their MNBC, Europe does not want to follow this excitement exactly, which it sees as a bad example.
In fact, Christine Lagarde had explained her approach during an online conference on November 12, 2020. The creation and installation of this new currency shouldn’t be a race against time. According to her, the design of such a project could take up to 4 years. Indeed, the establishment of a digital currency in Europe raises many questions and the ECB must constantly take its time to consider the risks involved.
So the creation of the digital euro shouldn’t open doors to a loophole in user data protection or some other dysfunction?
However, the installation of such a project must be thought through from all points of view and each risk carefully analyzed. Especially when it comes to currency stability.
While Bitcoin increase forecast propose that its value should explode in the next few years, Europe must position itself at all costs.
