The "Digital Euro" is expected to officially launch at some point in 2025, and will be issued by the European Central Bank (ECB) as the official Central Bank Digital Currency (CBDC) of Europe.
We continue to learn more as the project continues developing, which involves creating an entire new framework of rules and guidelines as this is the first-ever digital currency issued by the ECB.
In the Project's Latest Updates We Get a Look at Something Many Have Been Wondering and Speculating On - How it Will Be Controlled?
In its most recent report, some of these questions are answered as the ECB introduces us to what they're calling "supervised intermediaries" - these will be the organizations having 'direct contact' with individuals, merchants and companies that use the digitized currency once it enters circulation.
For the EBC to consider an entity a qualified "supervised intermediary" that entity must be one supervised and controlled by a previously designated public authority, in charge of guaranteeing that the operations are executed within a pertinent regulatory framework.
In other words, those already operating under oversight of finance and banking regulations.
Among approved intermediaries - payment service providers, credit institutions, electronic money institutions and payment institutions all 'meet the defined criteria' to provide services using the Digital Euro.
But Don't Expect to See the Digital Euro Next to Your Crypto in your Existing Digital Wallet...
As most expected the Digital Euro and other CBDCs to come will not have much in common with cryptocurrencies - while both are digital the similarities end there, as the way everything from software, to the internet, are used will be completely different.
Owning a Digital Euro does not mean freedom to choose how to store it, any digital wallet or entity that will manage your money, for both individual users and retailers, will be done with tools developed in partnership with, or organizations operating under the guidelines of the European Central Bank.
A test run is scheduled to start at the beginning of the new year and run through the first quarter of 2023 This exercise will include participants from every relevant sector - banks, payment service providers, consumers and merchants, which will then provide feedback to be included in a new report from the Central Bank. This report is expected to either say that the tech is ready, or highlight what still needs to be changed or implemented before an official launch.
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Author: Mark Pippen
London News Desk
Breaking Crypto News
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