A digital euro might be introduced as early as 2026, according to an ECB official.
Fabio Panetta stated that stablecoins were “susceptible to runs,” much as investing in cryptocurrencies in response to recent market volatility. Fabio Panetta suggested that a virtual euro will most certainly be established within four years, most likely through a charge system between men and women. She is a member of the European Central Bank’s governing board.
Panetta said in a lecture at the National College of Ireland on Monday that the ECB may begin developing and testing options for a digital euro for European Union countries in 2023, a period that might last up to three years. He noted that making digital money legal tender and allowing it to be used in peer-to-peer payments might assist increase adoption. Panetta also addressed recent cryptocurrency market instability, with TerraUSD (UST) de-pegging from the US dollar and the prices of numerous major coins, including Bitcoin (BTC), falling. According to the ECB official, stablecoins, such as Tether (USDT), were not “risk-free” and were still “susceptible to runs,” much like investing in cryptocurrencies.
“Recent developments in the crypto-asset market demonstrate that it is a delusion to imagine that private instruments may operate as money when they cannot always be exchanged at par into public money,” Panetta stated. “Despite assertions that cryptos are a viable kind of “money free of public control,” they are far too dangerous to be used as a reliable means of payment. Many EU officials believe that legislation and policies aimed at launching a digital euro might be implemented over the next five years. Panetta stated in March that Europeans would be more inclined to embrace a digital euro designed to meet their payment demands and hence acceptable in both physical and online establishments.