ECB Moves to Start Digital Euro Project

The ECB has been discussing the potential launch of a eurozone central bank digital currency since the beginning of the year.

AccessTimeIconJul 14, 2021 at 11:39 a.m. UTC
Updated Sep 14, 2021 at 1:25 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The European Central Bank (ECB) said it will move from discussion to exploration in its plans to develop a digital euro.

  • The ECB decided to start the investigation phase of a eurozone central bank digital currency (CBDC), which will last 24 months, an announcement Wednesday said.
  • The ECB has been discussing the potential launch of a CBDC for the 19 euro countries since the beginning of this year. ECB President Christine Lagarde said in March that one could be launched within four years.
  • "We will commit the resources necessary to design a marketable product," ECB board member Fabio Panetta said in a blog post on Wednesday. "But a decision about whether or not to issue a digital euro will only come at a later stage. And in any event, a digital euro would complement cash, not replace it."
  • Research by the central bank last year highlighted a drop in the use of cash since 2019, with the COVID-19 pandemic accelerating in the long-term decline.
  • The ECB said prior experimentation suggested that an architecture "combining centralized and decentralized elements are possible."
  • The move from discussion to exploration of a CBDC is one that numerous other central banks including those of the U.K. and Japan have made in the past year.
  • Among major economies, China leads the way in CBDC plans, while South Korea and Sweden both appear to have moved from exploration to testing in recent months.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.