In the latest news from cryptocurrency world, many experts believe that even the proof of concept of digital euro is around four to five years away, there is no rush to release a digital euro.
Recently, a panel called “Upgrading Money to the Digital Age: Introducing Digital Euro” was held with the participation of experts. They all agreed that the implementation of digital euro will experience long delay.
COVID-19 was one the reasons to make CBDCs popular
CBDC is the abbreviation of Central Bank Digital Currency. It became one of the popular topics in the past recent years. Especially, since COVID-19 pandemic beginning.
The European Central Bank announced that the digital euro will not launch earlier than middle of 2021. In fact, previously, the president of ECB estimated that it will be launched on January. However, now, the president of ECB, stated that the question, which we are facing with is that “How do we introduce the digital euro into the ecosystem? In addition, how does it collaborate with commercial bank money?
CBDCs need support
Carl Andreas Claussen, the advisor of the Swedish Riksbank, mentioned that the digital euro will be launched in four or five years later. In fact, the main problem is that the regulatory problems, which CBDC is facing with. He believes, in order to pass the regulations, this project needs the support of politicians.additionally, he suggested to the parliament in order to use some experts to look at the project.
There Is No Rush To Release Digital Euro; Sweden could be the pioneer
However, Sweden is not in the Eurozone, it’s part of the European Union. It means, it’s holding its own currency. In fact, Sweden has the lowest amount of cash usage in the world. It shows that the population of the country will accept digital form of money easier than other countries. As a result, Sweden could be the pioneer among other European countries to launch and release CBDC.
In fact, the experts believe that the competition in releasing CBDC could make the process faster. Something like a new CBDC or even Facebook Libra could create an atmosphere, which will motivate others to take action.