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According to the recent blog post, the Governing Council of the ECB today started at investigation phase before launching a digital euro.
This phase will last for two years and it will study main issues that may rise with design and distribution of the European CBDC.
(THREAD) We have decided to launch a project to prepare for possibly issuing a digital euro. We will look at how a digital euro could be designed and distributed to everyone in the euro area, as well as the impact it would have https://t.co/KCf73qHOZ8 1/3 pic.twitter.com/eHvpFlH8sq
— European Central Bank (@ecb) July 14, 2021
Starting the digital euro preparatory project
The ECB chief Christine Lagarde took part in the meeting that occurred upon the launch of the project.
The first report on a possible launch of a ECB digital currency was published by the bank nine months ago. Lagarde stated that during that time, they have managed to perform a proper analysis, collected feedback from experts and regular citizens and have come to “encouraging results”.
Digital EUR will not replace cash, it’s greener than Bitcoin
The new phase of preparation for the digital euro launch will last for twenty-four months and it will help the creating teams to study all possible stumbling blocks regarding the design and distribution of the digital euro.
According to Lagarde, the CBDC must meet the needs of EU citizens but at the same time avoid making any negative impact on the local financial stability and ECB’s monetary policy.
She made a reminder that the CBDC will not push out cash but will be used along with it.
As per Lagarde, the digital euro much be easily accessible, riskless and show high efficiency as CBDC.
She also promised that the task force will study all possible variants of how the launch and use of the digital euro will impact privacy of regular consumers in the EU area and on the economy overall.
Digital euro will be greener than Bitcoin
The ECB has also stated that the digital euro will be greener than Bitcoin, perhaps, following the suit of China that intends to cut down all high energy consuming projects in the country and Elon Musk who has suspended Bitcoin payments for Tesla until BTC mining becomes at least 50 percent based on green energy.
*ECB: DIGITAL EURO MORE ENVIRONMENTALLY FRIENDLY THAN BITCOIN
— *Walter Bloomberg (@DeItaone) July 14, 2021