To this point, on Friday, October 2 the European Central Bank announced that it will start conducting experiments to decide whether to launch a digital euro, according to Euro News.
In a report setting out the pros and cons of launching a digital euro, the ECB said that it “could support the Eurosystems objectives by providing citizens with a safe form of money in the fast-changing digital world.” By which, of course, it means preserving the ability to deposit – and withdraw – digital funds from European accounts at will, while in the process making banks redundant.
Unlike private digital currencies like Bitcoin or Facebook’s Libra, the digital euro would be a central bank liability and would complement the current offering of cash and wholesale central bank deposits. Its value would therefore not be volatile because it would be backed by the central bank.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.