With the recent wave of adoption of cryptomorphs, the ECB is preparing to create a new money modality on the old continent.
European Flag with Bitcoin Symbol Euro Digital Cryptomorphs
European Flag with Bitcoin Symbol
The European Central Bank (ECB) has opened a public consultation on Euro Digital. The public is to contribute information that will improve the central bank’s digital money project.
The new competitor for crypto-currencies is still at the study stage. After publicly announcing its intention to create digital money, the Central Bank said it will not use cryptomone technology.
Therefore, the ECB, which is chaired today by Christine Lagarde, wants to digitise the economy. One of the impulses for the movement was certainly the pandemic and the „risks“ of contracting the disease in a physical currency.
In fact, Europe is going through a period of testing of this technology, with several countries following the same path. Sweden and China, too, are one of the countries at the most advanced stages of creating state digital money.
ECB holds public consultation on Euro Digital
What do European citizens think about the creation of a digital currency? That is the ECB’s question on the creation of a digital Euro version.
China has already created its own digital currency by conducting large-scale tests within the country. Ukraine, on the other hand, has made it clear that it should use cryptomite Stellar to create its digital currency version.
Europe is therefore keeping an eye on the world’s progress in this sector, consulting its population on the subject. The open public consultation, according to Sapo of Portugal, totally ignores the new wave of valuation of cryptomime.
In a note, the ECB opened the public consultation on the 8th and will keep it open until 12 January 2021. The people of Europe are invited to take part in the debate on this construction, which should change the usability of money in the countries belonging to the Euro-bloc.
„Our public consultation on a #digitaleuro is open until 12 January. Give us your opinion on the benefits and challenges of issuing a #digitaleuro and on its possible design.
A Digital Euro would combine the efficiency of a digital payment instrument with the security of central bank money, which together with money would offer greater choice and access to simple forms of payment,“ said the ECB on Twitter.
Swedish digital currency creates problems for Swedish banks
Despite being a European bloc country, Sweden still uses its official currency as the Swedish Crown (SEK). But the country is one more to fight for the creation of the digital version of its currency, which will be called e-krona.
According to Reuters of England, the Swedish central bank wants its digital currency in use by the population. The expectation is that working with this currency will be easier than sending a text message.
However, for Swedish funding banks, this currency would mean fewer deposits with these institutions. This would leave the sector dependent on the wholesale market, Reuters said, but with less profitability. The eventual closure of these institutions, according to the bankers, could affect Sweden’s economy.
Nevertheless, Sweden’s central bank, the Riksbanken, does not believe that such a problem exists. That is because the biggest fear is losing people to cryptomites like Bitcoin, something that no central bank in the world wants today.
The Riksbanken has set a deadline of 2022 for a response on the launch of a CBDC, a digital central bank currency. In that year, Brazil warned that it should also launch a digital Brazilian Real.