European Central Bank Plans to Test Digital Euro

The European Central Bank (ECB) is considering implementing a digital euro and is planning to test this idea through a pilot-project which starts in mid-October.

ECB President Christine Lagarde said that Europeans were increasingly turning to digital in the ways they spend, save and invest, SEEbiz reports.

– Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise – Lagarde said.

According to the ECB's plan, the digital euro would be similar to the bitcoin, but, unlike cryptocurrencies, it would be supervised by the central bank.

Digital currencies use the blockchain technology, that is, large databases containing data on transactions. The digital euro would also be based on that technology and would be used in internet transactions.

– The digital variety of the common European currency would be available to all citizens and companies in the euro area – the ECB says and adds that it would be similar to banknotes, but in a digital form.

The ECB has designed it as a complement to cash, not as a replacement.

The idea is now to be discussed with citizens, academy members, the financial sector and governments so as to assess their needs.

The public consulting and the test phase begin on October 12.

European Central Bank

ECB

Christine Lagarde

digital euro

bitcoin

cryptocurrencies

digital currencies

blockchain

euro area