• ECB executive board member Fabio Panetta has set a deadline of three to four years for the launch of the digital euro on the bank’s 25th anniversary.
• The ECB is preparing a legislative proposal in June and begin testing for two to three years after that.
• Panetta said that the ECB won’t access personal data while they prevent money laundering and terrorist financing, and that distribution will be done by other banks.
ECB Member Sets Deadline for Digital Euro
European Central Bank’s (ECB) executive board member, Fabio Panetta, has set a deadline of three to four years for the launch of the digital euro on the bank’s 25th anniversary. 50 people are currently working on this project and studying its design, distribution, and impact on financial sector.
Legislative Proposal in June
After preparing a legislative proposal in June this year, the Governing Council will start a test phase for its central bank digital currency (CBDC). According to Panetta, this phase could last two or three years.
Data Protection Measure
The ECB won’t access personal data while they prevent money laundering and terrorist financing. Moreover, distribution will be done by other banks as the central bank doesn’t have any expertise in dealing with customers.
Not Meant To Replace Banknotes
Panetta stated that digital euros is not meant to replace paper notes as long as there is demand for it. This comes eight days after EU gave green light to Markets in Crypto-Assets (MiCA) bill proposed three years earlier.
Conclusion
In conclusion, Fabio Panetta announced a timeline of three to four years for launching digital euro project which aims at safeguarding financial stability with keeping central bank money at heart of financial system without accessing customer’s personal data or replacing paper currency until demanded by public.