[Blockchain Today Reporter Seung-won Jeong] It is reported that the European Central Bank is preparing to launch digital euros with the aim of mid-2021.
European Central Bank executive Fabio Panetta said “We are working on a bill to allow holding of digital euros with certain restrictions.” He added that “there will be no reduction in private bank deposit reserves due to such measures,” he said. “The limit on personal holdings will be around 3,000 euros (about US$3,600).”
However, he said that the discussion on the holding limit is currently underway, and that the maximum amount of digital euro payment has not been decided yet. Paneta emphasized that the ECB is not in competition with private banks, it merely offers a service called digital options.
“The digital euro will not harm the financial system and banks. Converting some of the cash to digital euro will not cause banks to lose their deposits. And, as previously stated, holding a large number of digital euros is not allowed. If the bank actually loses its deposits, the European Central Bank will provide more cash flow to the bank.”
An executive of Paneta said, “At the stage of sharing opinions, more than 8,000 opinions regarding personal information were received. Real citizens are very concerned about data protection. Citizens take the correct use of personal data very important, and this is an activity that the central bank can guarantee.” When the digital euro was launched, he cited the protection of personal information as the most important issue.
Digital Euro has already been mentioned since the time of President Christine Lagarde. And it was also known through the website that the European Central Bank is preparing to launch the digital euro with the aim of mid-2021. Paneta said, “We will be able to launch digital euros when we have spoken with the European Parliament for 4 to 5 years and decided which solution is technically most suitable.” “It shouldn’t happen that people have a large amount of digital euros by setting the limit they can hold.”
In the case of China, the digital comfort test has already started. Thousands of Chinese people received digital comforts in the form of lotteries. Paneta also expressed his opinion that piloting digital euros in European cities would be a smart decision.