Sumary of Future of Digital Euro ‘Not Clear Yet,’ Former Eurogroup Official Says:
- Europe’s digital currency project has made some progress recently, with the Eurozone’s central bank moving to its next stage.
- Critics point, however, to the continuing lack of clarity around the design and purpose of the digital euro after a decade-long delay, if cryptocurrency is taken as a benchmark.
- Digital Euro to ‘Feel Like a Prepaid Card of Sorts’ A week after the European Central Bank (ECB) decided to proceed with its plan to create a digital version of the euro, experts have voiced concerns about its unclear future.
- Speaking to Euractiv, Coelho elaborated: For the moment the digital euro remains flagrantly ill-defined … it might well be the case that the first version of the digital euro will feel like a prepaid card of sorts and make little difference to our day-to-day lives, but it could change gradually.
- What’s known so far is that the digital euro is supposed to represent euro notes and coins in electronic form.
- Unlike present-day bank money, however, it will be stored directly in accounts issued by the ECB, and not at commercial banks.
- ECB Losing Game to Cryptocurrencies and Stablecoins By default, the digital euro should be safer than the private sector banking system, Euractiv remarks, as a commercial bank could become insolvent, a remote but nevertheless real possibility.
- “In the collective mind, the ECB is the ultimate guarantee,” Netinvestissement co-founder Karl Toussaint du Wast told the publication.