Christine Lagarde, President of the European Central Bank, said that the ECB is aggressively pursuing the idea of a digital euro and expects to finish the testing phase by October 2025. If it goes through, it will be the EU’s first Central Bank Digital Currency (CBDC).
Unlike cryptocurrencies, CBDCs aren’t decentralized or run on blockchain. They’re pegged to a country’s national currency, so the value of 1 digital euro is equal to the value of one physical euro.
CBDCs have been a hot topic of debate for a long time now. Proponents believe they’re absolutely essential to move to a cashless economy. They also argue that they’re a lifeline for unbanked populations, especially in regions where traditional banking infrastructure is limited.
Detractors feel they centralize financial power, contradicting the decentralized ethos of cryptocurrencies.
Also, historical data from countries that have implemented digital currencies aren’t that encouraging. For instance:
Support the originator by clicking the read the rest link below.
