ECB outlines timeline for digital euro issuance

The European Central Bank (ECB) could issue CBDC by 2026, said ECB Executive Board member Fabio Panetta.

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\”This is a very complex project, something like this has never happened before. […] I am somewhat optimistic that in four years we will be ready,\” the official said during a speech at the National College of Ireland.

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According to him, preparations for the launch of the digital euro will be completed by 2023. Provided the timelines are met, the EU will have three years to test the CBDC before its full integration into the financial system.

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Panetta noted that the asset would help preserve trust in fiat, \”provide a monetary anchor in the digital age\” and the role it has lost due to flawed monetary policy pursued in different countries.

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\”It [the digital euro] would be a reliable means of payment designed in the public interest. And this would preserve the coexistence of sovereign and private money, which has served us well so far,\” added an ECB representative.

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The official also described P2P payments as \”the first testing ground\” for the new technology.

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In his speech, Panetta also touched on the situation with the algorithmic stablecoin UST. He said that \”stablecoins\” are vulnerable and cannot be guaranteed to be redeemable at any time.

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The initiative to issue a digital euro began in November 2019. In October 2020 the ECB published a comprehensive report on the topic.

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In spring 2021, the regulator’s chair Christine Lagarde said that the European Union could launch its own CBDC within four years if policymakers approve the project.

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In July, the ECB Governing Council decided to begin the CBDC research phase, and in October the regulator formed an advisory group on issues related to the potential development and rollout of the digital euro.

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In February 2022, EU finance commissioner Mairead McGuinness said that the European Union would consider a CBDC bill at the start of the following year.

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In the April ECB presentation, experts called the anonymity of digital euro holders \”undesirable\”.

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