Beautiful Virgin Islands

Monday, Aug 04, 2025

There could be a digital euro by the middle of the decade

There could be a digital euro by the middle of the decade

The European Central Bank is moving ahead with efforts to create a digital version of the euro as the use of cash declines and China ramps up tests of its own e-yuan.

The central bank announced a two-year investigation on Wednesday that will examine "key issues regarding design and distribution" of a digital euro and analyze the potential market impact. A final decision on whether to roll out a digital euro would come later.

"Given the digital transformation under way, which has the potential to transform the payments landscape and even the entire financial system, central banks must be bold and keep up with the pace of change," Fabio Panetta, a member of the ECB's executive board, said in a blog post.

A digital euro wouldn't replace cash, but would function in much the same way. Instead of paying for goods or services with banknotes, Europeans could use an electronic form of money issued by the European Central Bank or national central banks to a digital wallet.

Panetta said the central bank will aim to start developing a digital euro once the investigative period is over. That subsequent process "could take around three years," putting Europe on track to potentially roll out a digital currency in 2026.

Why Europe is taking action


The ECB acknowledges that "many questions still need to be answered" before a digital euro is introduced. But the central bank thinks it's worth exploring to "ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money," President Christine Lagarde said in a statement.

It's also clear that the ECB is concerned about the consequences of waiting too long to act.

In a speech last month, François Villeroy de Galhau, the governor of France's central bank, said central bank money could become sidelined as the use of cash declines and new digital coins and tokens emerge. Europe started looking into a digital euro more seriously after Facebook (FB) unveiled plans to create a digital currency in 2019.

Villeroy also emphasized China's progress in launching a digital yuan, which is already available in a number of Chinese cities.

"The risk is clearly that Europe will lose momentum not just in its drive to strengthen the international role of the euro, but even in preserving it," he said. "The challenge here is also a geopolitical concern."

But some experts doubt that a digital euro is necessary, given how many consumers already make transactions using credit or debit cards or mobile payment services.

"I am a bit skeptical people are actually in need of this," said Grégory Claeys, a senior fellow at Brussels-based think tank Bruegel.

Federal Reserve officials in the United States are also discussing the possibility of creating a digital dollar, though they're moving with greater caution than their European counterparts.

Randal Quarles, the Federal Reserve's vice chair for supervision, said last month that any proposals to create a central bank digital currency, or CBDC, must clear a "high bar."

"Before we get carried away with the novelty, I think we need to subject the promises of a CBDC to a careful critical analysis," he said.

He noted that the US dollar is "already highly digitized," and pushed back on the notion that the United States needs to act just because other jurisdictions are moving first.

"It seems unlikely ... that the dollar's status as a global reserve currency, or the dollar's role as the dominant currency in international financial transactions, will be threatened by a foreign CBDC," Quarles said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
×