The interest of the central banks for the digital currency has grown exponentially, with over 130 countries That they are considering issuing a digital currency. According to a recent survey by the Atlantic Council, 66 of these countries are in the advanced stages of exploration, developing or preparing to launch their own digital currencies. Among the most notable countries is the European Central Bank (ECB), which has launched a project for thedigital eurothe introduction of which could be announced by 2025. The increasing digitalization of money has pushed financial institutions to consider these currencies as a necessary response to the changing global economic landscape.
Features of digital currency
Digital currencies issued by central banks, known as CBDC (Central Bank Digital Currency), represent a modern form of fiat currency.backed by trust in the issuing authority. These digital currencies offer an alternative to the use of cash and have the potential to make payments more efficient and secure. Unlike cryptocurrencies, which operate on decentralized systems, CBDCs are managed and controlled directly by central banks, providing greater stability and protection to users. The Atlantic Council report stresses that central banks must provide a public option, or they will lose control of the future of money.
In Europe, the digital euro could revolutionize the way citizens make payments and manage their finances. The ECB expects this new form of money to be complementary to cash, offering a free and universally accepted option for everyday transactions. Furthermore, the digital euro will also serve to reduce dependence on non-European private payment providers, creating a more autonomous and resilient ecosystem for payments in the European Union. This development is important in a context where inflation and digitalization are changing the global economic landscape.
Do citizens prefer cash?
Despite increasing digitalisation, European citizens want to maintain the possibility of using cash. The ECB has already stressed the importance of protecting users’ privacy, allowing transactions similar to those with cash. In addition, the ECB is studying how to prevent fraud and cyber attacks to ensure the security of transactions. Creating a digital wallet in euros through banks or post offices will be a fundamental step for users, who will have to decide whether or not to adopt this new digital currency. The ECB will take a final decision on the creation of the digital euro by October 2025, which could be a crucial moment for the future of the European economy.
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