Beautiful Virgin Islands

Tuesday, Jun 03, 2025

European Central Bank Launches Pilot Project To Create "Digital Euro"

European Central Bank Launches Pilot Project To Create "Digital Euro"

"Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money," ECB president Christine Lagarde said in a statement.
The European Central Bank on Wednesday formally launched a pilot project to create a "digital euro", in response to the growing popularity of electronic payments and the rise of cryptocurrencies.

"Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money," ECB president Christine Lagarde said in a statement.

The initial "investigation phase" is to last two years and will focus on the digital euro's design and distribution options, before a final decision is taken on whether to proceed.

The move comes as policymakers around the world explore so-called central bank digital currencies (CBDCs) as a stable and risk-free alternative to crypto assets like bitcoin and Facebook's planned diem currency.

Central banks are also responding to increased demand for digital payment options as cash use continues to decline, a trend fuelled by the pandemic and the desire to avoid contact.

The Chinese central bank is already trialling a digital renminbi in several cities, while the Bank of England has launched a taskforce to look into a possible "britcoin".

The US Federal Reserve and the Bank of Japan are also researching digital currencies.

The ECB has previously signalled it could take around five years to bring the e-euro to life, meaning a rollout isn't expected before 2026.

The Frankfurt institution also stressed that any future digital euro "would complement cash, not replace it".

A digital euro would be an electronic version of euro coins and banknotes held in a digital wallet, potentially allowing eurozone citizens for the first time to have accounts directly with the ECB.

A key challenge will be to balance privacy demands with anti-money laundering regulations, with experts saying it's unlikely a digital euro can offer the same kind of anonymity as cash.

"A digital euro must be able to meet the needs of Europeans while at the same time helping to prevent illicit activities and avoiding any undesirable impact on financial stability and monetary policy," the ECB said in its statement.

To avoid taking business away from commercial banks, ECB executive board member Fabio Panetta recently said the central bank might cap the amount of e-euros individuals can hold in their digital wallets at around 3,000 euros ($3,500).
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×