The European Central Bank is currently immersed in a project called digital euro, which aims to become a digital currency that protects the interests of the continent or rather of the union itself against other digital coins exteriors. We are going to talk about everything that has come out so far about the digital euro from the European Central Bank with the aim of understanding what it is about, what its uses and limitations will be, the main advantages and if there is an approximate date for its launch. launch.
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What is the digital euro
The digital euro is a virtual currency whose objective is to serve as a means of electronic payment.
It is open to anyone within the European Union, and it is about finding a solution that is as secure as possible and of course also easy to use, in the same way that cash is currently used.
To use it, a mobile application or a card could be used, something that is still being studied since it must be taken into account that the digital euro is currently still in development.
Main utilities and limitations of the digital euro
The digital euro would be a currency designed to make safer and more reliable electronic payments, guaranteeing the stability of payment systems and monetary systems.
One of its main tasks is to strengthen European monetary sovereignty, thus increasing the capacity for competition and efficiency in payments at the European level.
At least in the beginning, a maximum limit per person would be established, the objective of which is to prevent the flight of money from the banks. This amount may vary but it seems to be around €3000.
A fairly important limitation regarding the digital euro is that it does not generate interest.
According to the European Commission, it would do so so that banks continue to maintain the possibility of offering profitability to their clients to guarantee their permanence.
It will also not work in those cases in which the client wants to make large purchases or wants to save money due to the limitation, in these cases it is necessary to contact a bank.
In essence, the objective of the digital euro is to serve to make day-to-day payments in a more comfortable and secure way.
Payment method advantages
The European Central Bank recognizes that at the moment it is still in full investigation, so it cannot report on all the advantages that this payment method would have.
Once the final proposal is released, all the details will be known, but so far, it is considered that its main advantages will be:
- It will have maximum accessibility.
- It will be very solid.
- Guarantee the security of payments and collections.
- It will offer maximum efficiency.
- Complied at all times with European law.
- The maximum level of privacy will be offered to the user.
- Banks will stop being intermediaries.
- It will allow you to make payments without having an Internet connection.
When could the digital euro start to be used?
The European Central Bank's digital euro concept began its journey in October 2021, and initially, the launch date would be October 2023.
That is, if nothing happens, the goal is to develop it in just two years, but of course it is not an official launch date yet since there are still tests to be carried out and modifications pending.
Either way, the digital euro is expected to be available for use before the end of this year 2023.
Industrial Engineering student and lover of writing and technology, for several years I have participated in various pages with the aim of always keeping myself informed of the latest trends and contributing my grain of sand in this immense dissemination network that we know as the Internet.
