The European Central Bank calls for quicker action on the digital euro, warning that ongoing legislative delays could jeopardize progress as global competition intensifies.
In an interview with Euronews, Evelien Witlox, the ECB’s project manager for the digital euro, emphasized the need for Europe to accelerate its development of a digital currency to avoid falling behind global competitors like the U.K. and China, which are also advancing their central bank digital currencies. Witlox pointed out that the European market remains fragmented, with the closest competitors to covering all of Europe being non-European entities.
Notably, there is no pan-European digital payment solution, as 13 of the 20 eurozone countries lack a national card scheme and rely on international providers like Visa and Mastercard.
The ECB initiated a CBDC exploration project in 2021 to tackle this issue. However, the European Parliament and Council must finalize the legal framework before the digital euro can progress. This incomplete process has been nearly 17 months since the European Commission’s proposal. This delay has sparked concerns within the ECB, according to Witlox.
While progress has been made in discussions about the digital euro, Witlox emphasized the importance of maintaining urgency to ensure “sufficient pace” so that the digital euro is available when truly needed. Although there is no definitive timeline for its launch, Witlox remains optimistic, highlighting that Europe is still “at the forefront of CBDC development.”
The European Central Bank is actively pursuing the development of a digital euro, while India’s central bank is taking a more cautious stance on its central bank digital currency (CBDC). Deputy Governor T. Rabi Sankar emphasized the need to carefully evaluate the potential impacts of CBDCs on cross-border payments and trade before launching. He stated that India will not rush into its CBDC implementation but will wait for a clearer understanding of its outcomes.
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