ECB plans to legalize the digital euro as a means of payment within two years

This will help ensure a wider distribution of CBDC than critics of the project suggest

15.11.2021 - 14:15

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What’s new? An economist and member of the European Central Bank’s (ECB) executive board Fabio Panetta stated that the digital euro will become legal tender in the eurozone if the ECB proceeded to launch the new form of money. At the same time, he stressed that obtaining the status of an official payment instrument should not be taken for granted.

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“This is a likely outcome. The issue will be considered in the next 24 months,” Panetta added.

What are the benefits for CBDC? The status of a legal payment instrument may give the digital currency issued by the central bank an advantage over other forms of electronic payments in Europe. Right now, they are not recognized as legal tender and are therefore not always available as a payment method. If the ECB makes the digital euro cost-effective and guarantees its usability, it will help ensure wider distribution than critics of the project suggest.

What does Panetta say? The economist refuted arguments that the digital euro will be superfluous against other alternatives, saying the central bank will do anything to stimulate its use.

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