Fabio Panetta, a member of the Executive Committee of the European Central Bank (ECB), has claimed that the digital euro could arrive within four years, potentially designed with an individual-to-individual payment solution.
In a speech delivered Monday at the National College of Ireland, Panetta said that the ECB could start developing and testing solutions to provide a digital euro to members of the European Union in 2023, a phase that could last up to three years.. He added that making the digital currency legal tender and usable in P2P payments could help promote its adoption.
Panetta also commented on the recent volatility in the cryptocurrency market, with TerraUSD (UST) delinking from the US dollar and the price of many major coins including Bitcoin (BTC) falling. According to the ECB official, stablecoins, including Tether (USDT), were not “risk-free” and remained “vulnerable to downturns”, just as investing in cryptocurrencies carried certain risks.
“The recent evolution of the crypto asset market illustrates that it is an illusion to believe that private instruments can act as money when they cannot be converted to public money at all times”Panetta said. “Despite claims that cryptocurrencies are a reliable form of ‘currency free from public control, they are too risky to act as a reliable means of payment. They behave more like speculative assets and pose multiple public policy and financial stability issues.”
— National College of Ireland (@NCIRL) May 16, 2022
Estimates from many EU officials suggest that legislation and policy focused on launching a digital euro could come within five years. PAnetta said in March that Europeans would be more willing to accept a digital euro aimed at meeting their payment needs, and therefore also accepted in physical and online stores.
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