The European Central Bank (ECB) is still strongly considering a digital currency and has published a report to the effect. Although the ECB is not ready to issue a digital euro just yet, the institution wants to be ready for such an issuance whenever there’s a serious need to.
The ECB released a report detailing the possibility of a digital euro. The report, which runs for 50 pages, specifically said the ECB should stand prepared to release a digital currency “should the need arise.” The report also lists several scenarios that may necessitate a digital euro.
According to the report, a rise in public demand for electronic payments and a decline in the use of liquid cash are two factors that will contribute to the issuance of a digital euro. The report also mentions that other factors include an increase in the adoption of central bank digital currencies (CBDCs) by other central banks, and a global and private payment method launch.
Generally, there is an increase in the number of Europeans who use digital methods for financial activity such as payments, investment, and saving. According to ECB president Christine Lagarde, the central bank should always be ready:
“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.”
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