According to a statement from the European Central Bank, the development of the Digital Euro is expected to be initiated by next year, with the expected launch time to be in around 4 years.
Digital Euro Coming Soon
An executive from the European Central Bank named, Fabio Panetta recently stated that the introduction of the digital euro could be expected to come by the year of 2026, providing European citizens an alternative solution for person-to-person (P2P) trading.
Fabio Panetta when addressing an Irish college, stated that the European Central Bank is working towards the initiation of the development and testing phases of the project by next year, which could last an additional three years before its official release to the public.
Fabio stated that the members of the European Union would be greatly benefited by this new solution and making digital currency legal for the public to engage in P2P trading will not only boost the economy but will also contribute towards widespread adoption of the asset and service.
Cryptocurrencies and their Risks
Fabio Panetta also commented on the recent crypto market crash that involved Terra getting de-pegged from the United States dollar, and the price valuations of many of the top cryptocurrencies such as Bitcoin, Ethereum and ADA to fall at an alarming rate. Fabio said that stablecoins in general were not operating without any risks and are still susceptible to further destabilization, like how putting money into cryptocurrencies has always had its risks.
Fabio believes that it is delusional to think that private currencies can pe used as official money, as they are not always compatible with public money and that these cryptocurrencies have too many risks behind them to let them become legit forms of payment in the system.
Furthermore, Fabio Panetta stated that these cryptocurrency assets mainly run-on uncertainties and are in line with many financial concerns, so the people of Europe will surely prefer the official and regulated digital euro that is aimed towards fulfilling the payment requirements and becoming compatible with all stores, both physical and digital online.
Several other officials from the European Union have mentioned that the rules and regulations regarding the release and use of the digital euro could be issued within five years of time.