The European Central Bank (ECB) joins the growing club of crypto-friendly financial institutions because they notification decided to “start a project in preparation for the possible issue of a digital euro”. The official ECB tweet states:

“We will look at how a digital euro can be designed and distributed to everyone in the euro zone.”

According to a press release on July 14, the Governing Board of the ECB has started the investigation phase of a project with a digital euro. This phase is planned for two years. During this time, the Eurogroup will develop a digital currency that will focus on “user preferences and technical advice to traders and intermediaries”.

The official statement from the ECB provides more details and underscores their success in identifying various ways to protect user privacy in line with the country’s GDPR requirements. They added:

“It also shows that the infrastructure’s energy needs will be negligible compared to the energy consumption and environmental footprint of crypto assets like Bitcoin (BTC).”

One of the ECB’s directors, Fabio Panetta, made it clear that the success of the digital euro will largely depend on the value it brings to “people, traders and financial intermediaries” who are significant in the euro area.

Related: UAE is testing and launching an internal digital currency

In a similar timeline, the United Arab Emirates also announced their interest in introducing a digital version of the national Fiat. In its three-year plan from 2023 to 2026, the Central Bank of the United Arab Emirates intends to be among the top 10 financial market leaders worldwide.

What appears to be gaining popularity in 2021, banking giants around the world are showing interest in testing various crypto assets. Recently, Vietnamese Prime Minister Pham Minh Chinh asked the State Bank of Vietnam to start testing its own digital currency.

While the crypto ecosystem is facing tremendous mainstream resistance, governments are now wary of missing out on fundamental innovations. As more executives share an interest in trying digital currencies, Bitcoin will redefine the letter “B” in the banking sector.