European Union Starts CBDC Consideration

After much deliberation, the European Union, specifically the new president of the European Central Bank has started considering the creation of a CBDC (Central Bank Digital Currency) on a more serious level.

In fact, the new president, Christine LAGARDE has already announced the creation of a task force for researching and developing digital currencies, which will most likely be referred to as the e-Euro. This decision is definitely a jab for Libra’s digital currency as well as a slap in the face of the Chinese CBDC. The EU cannot risk having a privately held digital currency dominate its markets, as well as a currency coming from China.

All of this boils down to politics, but the reasons are still pretty clear. It’s unknown whether the CBDC will affect the United Kingdom before Brexit, or if it will even be available before this important event. One thing we know for sure is that the United States Federal Reserve is going to have to do a lot more thinking about making its own CBDC or risk being surrounded by foreign currencies.

The first domino was collapsed by Libra, and it seems that the effect is now unfolding itself right in front of our eyes. 2020 seems to be quite the year for financial development in the world.

Image courtesy of Ledger Insights