The next major player in the digital currency space appears to be the European Union, which has announced plans to introduce legislation in early 2023 setting the legal basis for the ongoing work of the European Central Bank.
The value of cryptocurrencies has increased tremendously in the last two or three years (with some notable downturns along the way) and it seems that governments and governing bodies around the world are taking notice and looking to urge citizens to experiment with alternative currencies and payments. systems
“If we don't meet this demand, others will,” Fabio Panetta, a member of the ECB's executive board, said in mid-November. "As co-legislators, they will play a key role in any changes to the EU legislative framework that may be required to introduce a digital euro."
Is this a good idea?
The plans were initially announced by EU finance chief Mairead McGuinness at a fintech conference.
We'll have to see the exact plan the EU comes up with to be sure, but there are clear benefits as we move into an increasingly digitized world.
According to the ECB, the digital euro would be exactly that: "The digital euro would continue to be a euro: like banknotes but digital," the bank specifies. “It would be electronic money issued by the Eurosystem (the ECB and the national central banks) and accessible to all citizens and companies.
"A digital euro would not replace cash, but would complement it. The Eurosystem will continue to make sure that you have access to cash throughout the euro area. A digital euro would give you additional options on how you pay and make it easier. So therefore contribute to accessibility and inclusion".
These are lofty goals, of course, and reaching them will be difficult. The fact that the EU is waiting until next year to even introduce the legal basis for the digital euro shows how methodically the bloc and the ECB are approaching their work.
After cryptocurrencies entered the mainstream in 2021, governments around the world are seriously considering how to incorporate digital technologies into their own monetary frameworks.
China, for example, trialed e-CNY at the Beijing Winter Olympics in 2022 (at the expense of official payment partner Visa), despite concerns about blockchain technologies and a blanket ban on related activities. with crypto in the country.