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“We must be ready to issue the digital euro as soon as the need arises,” said Fabio Panetta, a member of the ECB’s Executive Board, adding that the ECB must prepare in time.
A study published by the ECB states that the digital euro is needed when there is a significant reduction in the amount of cash people use; if other forms of electronic payments are not available or foreign digital currency becomes rapidly popular.
Representatives of the central bank have indicated that the Eurosystem should decide on the progress of this decision by the middle of next year.
However, when judging the introduction of the digital euro, the Eurosystem still needs to assess the significant risks involved, such as potential cyber risks, privacy rights, and whether the central bank will need to collect sensitive user information when introducing the digital currency, writes Business Insider. “.
The heads of several major global central banks have already commented on the need to introduce the digital currency in the future. According to The Guardian, China’s central bank has already started testing digital currency in the country’s four largest cities this year, and Sweden’s Riksbank has also been testing the electronic form of the krona for several months.
For their part, the US Federal Reserve, the Bank of England and the Bank of Japan are currently cautious about the introduction of the digital currency.
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