Top ECB Official Says Digital Euro May Become A Legal Tender In European Union Area

Fabio Panetta, the European Central Bank’s prominent Executive Board member, disclosed that the euro’s digital version might have the likelihood to turn into a legal tender within the European region.

The Digital euro is not to be neglected

As reported by Bloomberg, Fabio Panetta (an Italian economist as well as ECB member) signalled the initiative while appearing in a panel discussion conducted in Finland’s Helsinki. He claimed that there are chances for the digital form of the prevalent currency to be categorized as a legal tender if the efforts to issue a digital currency are consistently done by the European Central Bank. He added that the officials would comprehensively scrutinize the endeavour during the coming two years. Nevertheless, he suggested that the accomplishment of such a radical move should not be neglected, and the financial organization ought to be more cautious.

Recent week, he went against the point that the digital version of the euro will get terminated during the wake of other such currencies because the target of the ECB will be to turn its Central Bank Digital Currency (CBDC) into a cost-effective product with the assurance of its utility. The letter counts to be significant because it could assist in widespread adoption across the general population. Fabio moved on to state that the CBDC will be significantly eye-catching for the public. In the event, the Bank of Russia’s head, Elvira Nabiullina, consented to Panetta regarding the desired outlook of a CBDC.

Some months back, she suggested that CBDCs, operating under the influence of government, will denote the financial network’s future. On the contrary, she strongly criticizes private virtual assets, which according to her, are extremely volatile. Thus the investors could drop immense sums while dealing with them.

Digital euro to be more profitable than Bitcoin

In 2021’s earlier period, the European Central Bank disclosed its strategy for initiating an investigation segment of a digital euro program to range over 24 months. During the testing phase thereof, the research department of ECB will focus on addressing the chief problems related to the design as well as distribution because it is inevitable for the euro’s digital version to fulfil the Europeans’ requirements. Additionally, the CBDC should avoid illegal activities and undesirable effects on the monetary policy and financial stability, as per Christine Lagarde (the European Central Bank’s President).

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