Digital Euro: European Central Bank begins public consultations

  • ECB plans to set up digital euro
  • Digital euro will not replace physical cash
  • ECB already released a document to survey the public opinion

The Central  Bank of Europe (ECB) has begun to consult the public on its plan to own a digital asset known as Digital Euro. 

ECB sees this as a means of complementing the physical Euro and also a way to help the continent improve its payment method and infrastructure.

The move had become necessary since the world is gradually moving towards a future where physical cash would become obsolete and unnecessary to carry out transactions. Coupled with the fact that most central banks of countries worldwide are beginning to work on their own digital currency.

The ECB is looking to set up a Digital Euro which would be acceptable by all 19 countries on the continent and the crypto asset would also have the full backing of the Central Bank.

The European Central Bank released a consultation document. It planned to collect the views of private individuals, trade unions, business organizations, schools, etc. on how the digital euro’s workings should be.

Digital Euro will not replace physical Euro

Upon the bank’s commitment towards accelerating for an asset that will provide an alternate opportunity to carry out different digital payments, the ECB has made it clear that its pursuit of “digital euro will not replace physical cash; instead, it is going to serve as a complement to it.”

ECB made it known that it is in the digital currency because it does not want to lag behind virtual currencies like Bitcoin or the yet to be released virtual currency being pushed by Facebook, Libra.

The bank believes that if citizens of member countries fully embrace these virtual currencies, it could have a dilapidating effect on banks in the continent who have not yet fully embraced the current digital currency trend.

The digital euro, like other virtual currencies, could also rely on the use of Blockchains to confirm and carry out transactions.

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Kamsi King

Written by Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.