We have known for a few months: the European Central Bank (ECB) is considering creating a crypto euro. Fabio Panetta, Member of the Board of Directors of the European Central Bank, has proposed several proposals in which the digital euro is necessary.
The ECB: Digital revolution is underway
On Thursday, October 22nd, the European Central Bank (ECB) meeting on pan-European payments and the digital euro took place.
As an introduction to this meeting, Fabio Panetta, Member of the Council of the European Central Bank, gave a speech in support of the digital euro. The latter spoke about the digital transformation in Europe and believed that “the European market is making significant progress due to the digital revolution”.
According to him, the digital euro could prove necessary in “a variety of scenarios”. This includes natural disaster situations where traditional payment methods are hampered.
Covid: A Digital Euro Accelerator
In the disaster scenario, the Covid situation was resolved. Indeed, in the context of a pandemic like the one we are currently experiencing, more and more European citizens are choosing to reduce cash payments and choose digital or contactless solutions instead.
“In a recent survey, around 41% of respondents said they used less cash. After the end of the pandemic, the vast majority of them expect to continue cutting cash payments,” says Fabio Pane Tower (Fabio Panetta)
However, the member states of the euro system have not yet reached a formal agreement on the creation of a digital euro. However, promoting the introduction of the Chinese national currency can stimulate discussion.
Fabio Panetta continued to take this opportunity to discuss the limitations of this system and the risks of computer attacks it can cause.