The European Central Bank (ECB) has unarguably stepped up their effort in the development of the planned ‘Digital Euro.’ Just on Monday, Bloomberg reported that the central bank applied to acquire a trademark license for the digital currency. This time, the European central bank wants to start a public consultation of the CBDC.
The recent actions of the ECB come as many Europeans are switching to digital means for several financial activities. Thus, the idea behind CBDC is to ensure that the currency and economy are fit for the digital era.
ECB intensifies its effort to the issuance of Digital Euro
Starting on October 12, the European central bank debuts a public consultation for the Digital Euro. The bank intends to learn the minds of the European residents about the planned central bank-issued digital currency. The subject of the consultation includes what the European expects in the CBDC. Also, it covers the assumed risks that may arise with the digital currency issuance, per the report.
In addition to this, the central bank intends to commence the testing of the Digital Euro. The publication precisely noted that the experimentation of the CBDC starts in parallel with the consultation.
“The euro belongs to Europeans and our mission is to be its guardian,” said Christine Lagarde, ECB President. “Europeans are increasingly turning to digital in the ways they spend, save and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.”
Europeans in the digital era
In a separate report, the central bank said the must prepare to launch the digital currency. Part of the reason is that many Europeans now prefer digital options for finance-related activities, including saving and investing. As such, the rate of digital payments uses surpassed that of the fiat currency.
The move for the Digital Euro launches the European central bank in the CBDC trend. However, it ultimately intends to shade Europeans from the risk associated with private digital payment providers; by ensuring security for their funds via the CBDC, as the central bank president already said.