Breaking: ECB Approves “Investigation Phase” For CBDC Research and Development

Prashant Jha
July 14, 2021
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The European Central Bank (ECB) has announced a major step towards the launch of its sovereign digital currency goals by approving an investigation phase. The investigation phase would be 2 years long and focus on researching various aspects of a central bank-issued digital currency.

“We have decided to launch a project to prepare for possibly issuing a digital euro. We will look at how a digital euro could be designed and distributed to everyone in the euro area, as well as the impact it would have.” The bank said in a statement to the press.

Christine Lagarde, the president of the ECB who is also known for her passive stance on Bitcoin said the end of the investigation phase could possibly lead to the launch of Digital Euro.

“We have decided to move up a gear and start the investigation phase of the digital euro project. In the digital age, people and firms should continue to have access to the safest form of money – central bank money.” Lagarde said in a Tweet.

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Digital Euro Would be Greener Than Bitcoin

The ECB in its official statement said that they are focusing on privacy and being environmentally friendly. It claimed the carbon footprint of the Digital Euro would be negligible when compared to Bitcoin.

Our experimental work has already allowed us to identify possible ways to protect privacy. It has also shown that the energy needs of the infrastructure would be negligible compared with the energy consumption and environmental footprint of crypto-assets, such as bitcoin.

Central Banks around the globe have accelerated their CBDC plans over the past couple of months, looking at China’s testing phase nearing its end. China had completed the development of its CBDC or digital yuan by the third quarter of 2019 itself and for nearly two years now, it is being widely tested across various provinces.

Yesterday, UAE Central Bank also announced its plans foe CBDC development putting it at top of its agenda in the upcoming three-year roadmap from 2023-26.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.