European Central Bank Does Not Play About Crypto!

 According to the president, Christine Lagarde, the European Central Bank is preparing to launch digital currency. Therefore, the public is asked to consider the issue.

The Frankfurt Institution will conduct a series of experiments with digital euros over the next 6 months and launch a 3-month public consultation starting October 12.

Meanwhile, decisions on the direction of the virtual currency project are expected to be submitted around mid-2021.

According to a statement, the digital currency will complete the cash function and not replace it.

The move was taken when consumers began to move towards cashless payments, and the ECB did not want to be left behind in the crypto currency sector, especially when it was also released by private companies such as Bitcoin and Libra Facebook which had not been launched.

Additionally, digital currency will allow individuals and companies to have direct savings with potential and safer central banks than with commercial banks, which are at risk for bankruptcy, or cash that can be stolen.

In addition, proponents of cryptocurrency say that it will involve faster and cheaper payment systems, especially overseas, due to the reduction of staff, administration and high costs required in traditional banking and investment.

However governments in Europe have insisted that any digital currency needs careful oversight.

Based on a statement issued by members of the ECB's executive board, the digital euro will support Europe's efforts towards innovation and will contribute to its financial sovereignty as well as strengthen the international role of the euro.

In addition, he also warned about the various challenges that will be faced, including concerns about privacy and its impact on traditional banking and financial stability. But, a neat and properly designed digital euro can address this risk.