The EU to launch the Digital Euro in November

The European Central Bank (ECB) announced the launch of a two-year trial phase for the digital Euro, a digital currency for the European Union, starting November.

This step comes to keep pace with financial developments by establishing a pilot program aimed at the possibility of launching a digital currency for the 20 countries that use the common Euro.

The move is a significant shift, as the ECB becomes the first major Western central bank to officially enter the world of digital currencies.

It’s worth noting that many countries have launched their own digital currencies through their central banks, including China, which began experimenting with a prototype of the yuan with 200 million users, India is preparing to experiment with a prototype as well, and about 130 countries are exploring the concept of digital cash.

The ECB’s initiative is a very big issue, and that the whole world is watching this matter with interest.

If it successfully addresses issues such as privacy, cybersecurity, and offline use of cryptocurrency, it will have a significant impact.

Over the past five years, central banks have become concerned when Facebook announced its intention to issue its own digital currency.

But now, policymakers must convince many people of the need to move to central bank digital currencies.

On the whole, central bank digital currencies (CBDCs) appear to be a possible reality and will see a gradual reduction in reliance on fiat cash in many countries.

Estimates from the Bank for International Settlements show there will be around 14 CBDCs available for retail and 9 for wholesale by 2030.

It’s expected that a digital currency will be issued by the Russian Central Bank and a digital ruble, specifically by 2024.

There are signs that major economies are preparing to deploy CBDCs Digital for their central banks by 2025.

Along with potential benefits, such as combating tax evasion and cleansing the informal economy, these currencies raise concerns of loss of privacy and judicial controls when funds are seized.