The crypto surge this year has led many central banks to get active with the development of their digital currencies. Earlier this year, the European Central Bank (ECB) released a public consultation requesting the opinion of the public over its digital Euro development. However, ECB president Christine Lagarde said that the launch of the digital Euro could be in the next four years.
In January, the ECB released the consultation documents for its digital Euro development. This attracted more than 8000 responses with over 40% raising concerns over privacy issues and security. Lagarde said that the analysis of the feedback from the consultation process will be communicated by the key players involved.
She added that the result will be sent to the ECB’s governing body and the European Parliament to decide whether the bank will continue with its Euro pilot tests. However, it appears that the ECB is not in a rush to launch the digital-based currency.
Lagarde continued that the launch of the digital Euro is a radical and “technical endeavour” and should be done right. Therefore, she said that the launch could be in another 4 years to ensure that they improve and not break the system.
Digital Euro Remains Contentious
Last week, the Chief Economist of Commerzbank, Dr Jorg Kramer said that the ECB’s aim over the issuance of a digital currency is to greatly expand its influence. He added that the central bank digital currency (CBDC) will certainly replace cash.
However, the head of DLT and Digital Asset Strategy at Deutsche bank, Alexander Bechtel remarked that ECB does not plan to wholly replace cash with CBDC. Many after expressed their concerns over the total digitalization and governmental control of these digital currency.
Lagarde also noted that many financial intermediaries have shown discontent over the ECB’s plan to launch a digital currency. She continued that