The European Central Bank (ECB) could begin seriously considering and studying the digital euro by mid-2021, the bank said in a report released Oct. 2.
The report examined how a digital euro may impact retail payments and how it can protect payments in the future. It also looks at how virtual currencies could fit within the landscape of the entire Eurosystem. However, it does not specify what model the ECB should take when and if it designs its digital currency.
Based on the report, the ECB may start a virtual currency program “to ensure meaningful answers are obtained to the open questions raised” by the middle of next year, possibly with an investigation phase to develop the digital euro and conduct experiments. It added that before issuance can be discussed, the ECB needs to consider the various stakeholders’ views.
The report noted digital currencies could bring more…