It could be some time sooner than European Union will get a central financial institution virtual forex, if it will get one in any respect.
In a Wednesday interview with Bloomberg Television, European Central Bank President Christine Lagarde laid out the advanced decision-making procedure with which the financial institution will decide the way forward for a virtual euro.
The ECB will quickly liberate its research of 8 thousand responses won from its virtual euro session procedure. “That will be communicated to the European Parliament which is one of the key players as well as the Commission and the Council with which we operate,” she said.
Based on that session, along the parliamentary paintings, the ECB’s Governing Council will make a decision whether or not the establishment will start experimenting with a CBDC through mid-2021.
Following an preliminary experimentation section, the council would then hang a six-month or a one-year overview on whether or not to roll out the virtual euro, Lagarde said.
“The whole process — let’s be realistic about it — will in my view take another four years, maybe a little more. But I would hope we can keep it within four years,” she stated, including:
“Because it’s a technical endeavor as well as a fundamental change because we need to make sure that we do it right. We owe it to Europeans, they need to feel safe and secure. They need to know that they are holding a central bank-backed […] equivalent of a digital banknote. […] We need to make sure that we’re not going to break any system, but enhance the system.”
Lagarde additionally discussed that some monetary intermediaries have expressed considerations concerning the ECB launching a CBDC. She stated that those intermediaries will proceed to co-exist with the brand new ecosystem in addition to money, which “will also continue to be available.”
As prior to now reported through Cointelegraph, the ECB introduced a public session on a possible virtual euro in October 2020.