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The ECB would be stepping up its engagement with stakeholders for the progress of the project. Young people are expected to play a key role in the adoption of the digital euro.
ECB’s Fabio Panetta has come forward with plans of the digital euro, announcing that it could be ready by 2026. Per a report, the digital euro will probably come with a peer-to-peer payment solution.
The announcement reinforces Panetta’s communication in March when the ECB official said that Europeans would more likely accept a digital euro targeted at solving their payment need, and that it would be accepted by physical and online stores.
“When we launched this project, we made it clear that this is a common European enterprise. Our collective effort is key to the preparation and eventual success of a digital euro,” said he.
The ECB would be stepping up its engagement with stakeholders for the progress of the project. Also, the youth is expected to play a key role in the adoption of the digital euro.
Other leaders of the project include Commissioner McGuinness and the President of the Eurogroup Mr. Donohoe. Notably, This is the first time an official from the European Central Bank has set a date for the planned adoption of a CBDC.
The Digital Euro Project Realization Phase
Speaking at the National College of Ireland on May 16, Panetta revealed considerations by the ECB to commence the development and testing of solutions for the provision of a digital euro starting 2023. Terming it the realization phase, he articulated that the last quarter of 2023 will be a period for testing the technical as well as business solutions.
Panetta is a senior board member of the European Central Bank (ECB). In his speech, the senior official highlighted that the digital euro will be used by members of the European Union, serving as a legal tender for use in P2P transactions, a feature expected to promote its adoption.
Preserving the Role of Public Money
On the issue of the market volatility witnessed over the past few weeks, the ECB official explained the vulnerability of running stablecoin, comparing it to the risk of crypto investment to traders.
He cited TerraUSD (ST) de-pegging from the USD and the massive decline of other digital assets, including BTC. Per the ECB executive, the recent market downturn indicates the perception that private instruments like stablecoins can take the place of money is a big illusion.
Panetta also challenged the idea that cryptocurrencies are a trustworthy form of currency independent of public control, saying that crypto are extremely risky as a payment mode. In his opinion, cryptocurrencies behave more like speculative assets raising concerns within the public policy and financial stability spheres.