Fabio Panetta, member of the executive board of the European Central Bank (ECB), said a digital euro could appear within four years and could be designed as a person-to-person payment solution.
Panetta to speak at National College of Ireland on Monday said The ECB could begin developing and testing solutions to provide EU member states with a digital euro in 2023, a phase that could take up to three years. Making digital currencies legal tender and used for P2P payments could help boost adoption, he added.
Panetta also commented on the cryptocurrency’s recent market volatility with TerraUSD (UST) decoupling from the dollar and the prices of many major coins including Bitcoin (bitcoin) decline. According to ECB officials, stablecoins including Tether (USDT), are not “risk free” and are still “runable”, just as investing in cryptocurrencies carries certain risks.
“Recent developments in the cryptoasset market suggest that it is an illusion to think that private instruments can act as money when they cannot always be converted to public money at face value,” Panetta said. A reliable form of “publicly controlled money”, but they are too risky to be a reliable means of payment. They behave more like speculative assets and raise a variety of public policy and financial stability concerns.
— National Institute of Ireland (@NCIRL) May 16, 2022
Estimates by many EU officials suggest that legislation and policy Focus on launching a digital euro Possibly within five years.Panetta said in March that Europeans would be more likely to accept targeting address their payment needsand therefore also accepted by brick-and-mortar and online stores.