The Euro is set to launch a new cryptocurrency, and the European Central Bank (ECB) “wants you to love digital coins.”
THE EURO is set to go digital as part of the European Central Bank’s cryptocurrency push, which “wants you to love the digital euro.”
Even though the digital euro isn’t ready for use right now or anytime soon, the ECB has begun a public relations campaign.
The central bank is still in the early stages of experimenting with virtual money in-house, with a prototype expected by the end of 2023 at the earliest.
The ECB’s efforts, however, have been jolted by the tech giants, who are themselves developing new payment methods.
Diem, a plan developed by Facebook and 25 other companies, could launch this year in the United States.
The concept comes at a time when a global surge in cryptocurrencies suggests that virtual money is the way of the future.
Last Tuesday, the price of Bitcoin reached a new all-time high of (dollar)68,025, while the price of Ether, the second-largest digital coin, increased by over 1% to (dollar)4814.80.
The European Central Bank (ECB) isn’t the only central bank considering a digital currency.
China has already begun testing digital yuan versions in various provinces across the country.
The move is seen as part of Beijing’s effort to reduce its reliance on the US dollar.
The US could lose trillions in commissions and value as a reserve currency if the greenback loses its status as the world’s reserve currency.
The popularity of crypto assets is exploding on a global scale.
Stablecoins, a digital token linked to a basket of assets, have grown in value from (dollar)5 billion last year to (dollar)120 billion today.
Then there are crypto assets like Bitcoin, which are determined by investor demand.
A few weeks ago, such virtual currencies were valued at around (dollar)3 trillion.
“The value of crypto assets today is greater than the value of securitized assets before the global financial crisis in 2008,” Fabio Panetta, a member of the European Central Bank’s Executive Board, told MEPs.
“If we don’t meet this demand, others will,” the official warned, stressing the importance of meeting it quickly.
However, central bankers face a difficult task in generating public support.
According to polls conducted in the United Kingdom and Germany, the majority of respondents are opposed to the idea of publicly-backed virtual currencies, citing skepticism about the benefits they would bring as well as government concerns.
“News from the Brinkwire.”