ECB’s Lagarde pushes digital euro launch, sparking crypto backlash

European Central Bank Plans Digital Euro Launch by 2029 Amid Crypto Opposition and Legislative Debates

  • The European Central Bank (ECB) plans to launch a digital euro, a central bank digital currency (CBDC), as soon as possible.
  • The digital euro aims to coexist with physical banknotes and be used for online payments across the European Union (EU).
  • The ECB will develop the technical infrastructure for the digital euro, targeting a rollout in 2029 pending legislative approval by the EU.
  • The announcement has faced significant opposition from the crypto community, citing concerns over privacy and surveillance risks.
  • Legislators in France and Germany have proposed banning CBDCs and instead supporting Bitcoin as a strategic asset.

The European Central Bank (ECB) announced plans to introduce a digital euro, a central bank digital currency (CBDC), aiming to launch it “as early as possible” to serve as a companion to physical banknotes in the European Union. The digital euro will be available for both cash and online payments within the EU.

- Advertisement -

The ECB’s governing council revealed on Thursday that it will start building the digital euro’s technical infrastructure. The project is set to move into a testing and deployment phase, with a possible launch in 2029 if legislation permitting the ECB to issue the CBDC is passed by EU lawmakers.

Christine Lagarde, ECB president, emphasized the unifying role of the euro, stating, “This is a big project because the euro is our currency, your currency. It brings us together. It’s a symbol of trust in our common destiny, so off we go with the digital euro in the next and final phase of preparation.” The digital euro aims to coexist with physical currency to ensure continued cash use.

The idea of CBDCs has drawn strong criticism within the cryptocurrency community. Some critics argue that CBDCs could enable intrusive real-time monitoring of payments and spending, posing threats to privacy and civil liberties. For example, David Thunder, a political writer, said, “creating a central bank digital currency erodes that trust by opening up the door to real-time monitoring of our payments and spending habits.” Meanwhile, others have dismissed CBDCs as unwelcome, as reflected in remarks like, “Begone, witch, we’re gonna use private money,” from Mert Mumtaz, CEO of a node provider.

At the same time, elected officials in Europe are proposing legal responses to this development. In France, Éric Ciotti of the Union of the Right for the Republic introduced a proposal to ban CBDCs. Likewise, the German political party Alternative for Germany has submitted a motion promoting Bitcoin as a national strategic asset rather than supporting CBDCs.

- Advertisement -

Central bank digital currencies are government-issued digital forms of money designed to be legal tender. Though they aim to provide a state-backed digital payment option, they differ fundamentally from decentralized cryptocurrencies, which operate without central authority and prioritize user privacy.

For further details, visit the ECB digital euro announcement and the ECB governing council statement.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

DeFi surge, three hacks and MEV bot returns majority funds!!

Three separate DeFi attacks this week drained millions and prompted on-chain recovery efforts.Makina reported...

BitGo shares tumble 22% after $212M IPO; dip below $15 at 2B

BitGo shares fell nearly 22% on the second trading day after its IPO debut...

Intel Slides 17% After Q1 Guidance Miss; Supply Constraints.

INTC shares fell more than 17% on Friday after a quarterly report and weak...

Gold’s FOMO Drains Bitcoin: Prices Falling, Metals Rise Soon

The author argues that Bitcoin prices are likely to weaken because fewer groups need...

Paradex refunds $650,000 to 200 users after error in markets

Paradex refunded $650,000 to roughly 200 users after a maintenance error caused unintended liquidations.The...
- Advertisement -

Must Read

Top 10 Best DeFi Tokens to Invest in 2022

Decentralized Finance (Defi), is one of the most talked-about topics in the crypto space alongside NFTs. So if you want to know the best...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!