European Central Bank (ECB) manager Fabio Panetta said that the EU could start CBDC tests in 2023.
Italian economist and European Central Bank (ECB) Board member Fabio Panetta said at a conference at the National College of Ireland that the ECB is working towards a fully functioning digital euro by 2026.
According to Panetta, the ECB is currently in preparation for the launch of the digital euro. The phase will be completed in late 2023 and will be tested for 3 years before the CBDC becomes public.
Italian economist said that the use of digital euro as a legal payment tool among all EU members could support the European economy. In addition, he stated that the ECB can encourage it with the use of digital euros in its advertising campaigns.
Paneta stated that cash will continue to be used, although at present the rate of payment in cash is only 20%.
“We will ensure that cash remains available. However, if the current trend continues, we may face a future where cash loses its central role as consumers turn to digital payment instruments”
According to Panetta, the digital euro can also lead to the preservation of trust in fiat money. .
“The digital currency issued by the central bank will enable anyone to use public money for digital payments. It will be a solid, reliable means of payment designed for the public good. It will also protect the sovereign currency that has served us so well so far”
Panetta finally said that stablercoins are vulnerable and are not guaranteed to be redeemed at any time. In giving this example, he used UST, which had a major crash.
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