The trial phase will intensify ECB’s cooperation with the European Commission on the digital euro
The European Central Bank (ECB) has a new virtual euro project.
The virtual euro project will involve prototyping, focus groups and conceptual work. The project will also examine functional designs as per user’s needs and changes in the European Union’s legislature framework that a central bank digital currency will require. The two-year investigation will also tackle potential usage as well as economic and market impacts.
The virtual euro has been set out as an accessible, efficient and riskless form. Experimentation was carried out in the currency’s ledger, circulation limits, anti-money laundering & privacy as well as consumer access with appropriate devices and without internet access. No significant technical issues were reported in the four areas.
TIPS, the Eurosystem Target Instant Payment Settlement as well as other blockchains can process more than 40,000 activities per second. As per the experiments carried out, architectures that combine decentralized and centralized elements are also possible. The infrastructure used in a virtual euro core is also environmentally friendly. The system uses less power to run transactions in a given second compared to that used in crypto assets.
If a digital euro is issued, it will not replace cash. Rather, the digital euro will complement cash.
We’ve reported that India-based ICICI Bank launched co-branded card.