European Central Bank Confirms Digital Euro CBDC, But There’s a Catch

Crypto News: Christine Lagarde, President of the European Central Bank’s (ECB) confirmed on Thursday that the digital euro project is progressing well, marking a significant step in the journey towards a central bank digital currency (CBDC). In a short video statement on X (formerly Twitter), Lagarde reiterated that the ECB’s governing council had approved the commencement of the preparation phase, on Wednesday, echoing an earlier statement by the bank.

Digital EURO CBDC: Cash Or Digital, The Choice Is Yours

Lagarde emphasized the forward momentum of the digital euro project, noting that it’s poised for a transformative journey in collaboration with European legislators and institutions. She however underscored the coexistence of traditional cash and digital currency in the future, offering consumers a choice that’s expected to be both convenient and cost-effective throughout the Eurozone.

“Cash is here to stay. You will have all options; cash and digital cash. So what does it mean for you? For consumer it would be free and easy to use everywhere in the euro area. All of that is of course subject to the legislative process.” Said Largade

Notably, as per the Wednesday statement by ECB, the preparation phase is set to commence in November and will span two years. Its primary objectives include finalizing a digital Euro rulebook, selecting providers to develop a CBDC platform, and conducting additional testing.

The ECB will only make a decision on issuing a CBDC once the relevant EU legislation has been completed. Lagarde assured the public that the future would offer a choice between cash and digital cash, highlighting that cash remains a viable option.

Privacy Concerns and Legislative Hurdles with CBDC

The move to the preparation phase follows a period of criticism and scrutiny, with concerns raised about privacy issues and conspiracy theories. Critics have argued that it might be premature, as the ECB has yet to clearly communicate the benefits of a digital euro.

Meanwhile, this development comes amidst rumors that France is considering Ripple’s XRP technology for its digital currency endeavors. As Coingape reported, the Banque de France has shown interest in XRP technology as a vital part of its CBDC testing, focusing on real-time settlements and currency exchange using XRP as a bridge.