Digital Euro passes the first tests. When to expect a launch?
Against the backdrop of universal quarantine and a gradually progressing crisis, world states are not abandoning attempts to improve the lives of citizens after the end of the epidemic. One of the developments created specifically for these purposes is a digital analogue of the euro. The creation of such a currency was known for a long time, but the real details of the project we receive only now. For example, France is already testing a preliminary version of the digital currency. Let’s figure out when to expect a complete transition to digital money and other fundamental changes in the European economy. So let’s get started.
At what stage of development is digital euro?
It should be understood that a complete transition to a fundamentally new monetary system is a long, complex and expensive process. That is why you should not be surprised at the slow pace of development of the digital euro, it takes time to improve the currency. At the moment, only the preliminary version of the project. Which is already used by the monetary regulator of France, is available for closed transactions. The State Bank began transfers using the CBDC cryptocurrency. Which was developed specifically for this purpose. At the moment, interbank transfers are being tested. Transactions involving ordinary citizens only in long-term plans. It is worth noting that earlier the head of the Bank of France, Villeroix de Halo, said that digital euro samples will begin at the beginning of 2020. And so it happened, the head of the bank fulfilled his promise.
At the moment, it is planned to work in one of three areas – making payments against financial instruments, transactions against digital currency and transfers against digital assets. The main goal of testing individuals is to determine the vulnerabilities of the CBDC currency, and also to determine whether the use of a digital asset will bring real benefits. Thus, it is likely that if the advantages of the digital asset over the ordinary euro are not obvious, we will not see the project.
When to wait for the launch of the new currency?
CBDC is far from the final version of the new Eurocurrency format. Now banks work only with a prototype, and the system is built in such a way that the remains of unused currency are completely erased at the end of the working day. The launch of cash circulation in CBDC format is also not planned yet.
But when, in this case, expect to launch the platform? It is incredibly difficult to unequivocally answer this question, since the digital euro is not a project of paramount importance. Currently, France, like any other European country, is concerned about the spread of coronavirus. The state is focused on the fight against infection, no other priorities yet. Moreover, financial institutions are not even sure of the need to use Blockchain, since it involves anonymity. Which is impossible within the state. That is, even the main “engine” of the system has not yet been determined. The project has a great future. But only under favorable conditions.
That is why it is definitely not worth expecting the launch of a new currency in 2020. Most likely, work on the digital euro will not end in the next 5 years. This is the most realistic forecast.
However, you can already sign up for testing the prototype digital euro if you read us from Europe. Group and individual applications are accepted until May 15, 2020. The selection of specific candidates will take place on July 10. Follow all the news about the creation of the digital euro and other events of the crypto industry with us. We publish only high-quality and interesting material. Thank you for attention. Good luck!