Europe wants to issue the electronic euro in 2023

The European Central Bank has just confirmed its plans to develop a digital euro and joined the centralized cryptocurrency race.

The European Central Bank (ECB) is conducting internal tests with the electronic euro and is expected to issue it by the end of 2023.

After that, the countries of the Union will evaluate the performance of the currency money and officially put it into operation in 2025.

According to the ECB, the currency will continue to function like a normal euro, but on a digital basis. “The electronic version of the coin will be issued by the Eurosystem to all citizens and businesses,” the bank said.

The ECB continues to experiment with designs and systems for the digital euro. Photo: Shutterstock.

The cryptocurrency market has grown rapidly in recent years. The authorities of many countries have recognized this trend and taken appropriate measures to meet the needs of citizens in digital currency transactions.

Among them, several countries have passed laws legalizing and regulating cryptocurrencies. El Salvador was the first country to legalize Bitcoin. The government of this country has encouraged Bitcoin adoption through the Chivo wallet and installed 200 Bitcoin ATMs across the country to help people exchange cryptocurrencies for USD.

“The digital euro will support paper money instead of replacing it. The Eurosystem will ensure that people can use cash anywhere in the Union. Cryptocurrencies are just one of many options that make it easier and more convenient for people to make payments,” the ECB said.

The draft law to introduce a digital euro must pass the European Parliament. Photo: Getty Images.

Paschal Donohoe, chairman of the Eurozone Finance Ministers Group, also mentioned the digital euro on the agenda of the region’s finance ministers.

“We need to speed things up,” Chancellor Olaf Scholz, a former finance minister, told Politico in 2021.

“I think eurozone countries should actively engage in digital coin issuance,” Scholz said.

According to Politico, this digital currency must go through the European Parliament to enact certain legal documents and regulations.

Digital asset classes will become a popular buzzword throughout 2021. Cryptocurrencies have hit record highs over the past year and are delivering incredible returns. Therefore, governments around the world have also started to consider researching and building virtual currency application technologies.

China is testing the development of a national digital currency, but limited to a few cities and the 2022 Beijing Winter Olympics. Photo: Bloomberg.

Only in Asia, many countries have launched their own digital currencies. China recently announced the test Renminbi Electronics for international athletes and visitors at the 2022 Winter Olympics.

Meanwhile, Japan is in the process of issuing a yen-denominated stablecoin, which Nikkei Asia says is expected to be used from 2023. Cambodia is also one of the first countries in the world to have the Bankong cryptocurrency issued by a central bank.

In Vietnam, investments in digital currencies are not recognized and protected by law. However, in June 2021, the State Bank was just given the task of researching and piloting the use of cryptocurrencies based on blockchain technology in the period 2021-2025.

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