(Financial World) The European Central Bank releases a signal that the digital euro "good things are coming"?

　　China News Agency, Beijing, January 23 (Liu Liang) The European Central Bank revealed this week that it will decide whether to continue the preparatory work for the digital euro as early as April this year.

This is also after the release of the digital euro report last year, the European Central Bank once again expressed its stance on the advancement of digital currencies.

　　In October last year, the European Central Bank released a digital euro report, laying the policy foundation for its upcoming digital currency project.

The digital euro combines the efficiency of digital payment tools with the security of the central bank's currency, and has the same legal currency effect as the euro banknote.

The issuance of the digital euro not only enriches currency payment methods, but also effectively reduces the risks of conventional payment services.

　　After the report was released, the European Central Bank listened extensively to opinions from all walks of life.

As of mid-January this year, the public survey has ended and more than 8,000 online feedbacks have been received, reaching a record level.

According to the European Central Bank, the investigation report is still being processed.

Preliminary analysis shows that the three indicators of privacy, security and "pan-European payment" of digital currency rank the highest, and will serve as an important reference for advancing the digital euro in the future.

The report is expected to be released in the spring.

　　European analysts expect that after the report is released, the European Central Bank will decide whether to launch a pilot project to test the feasibility of the digital euro and collect more practical scenarios.

Therefore, it is not yet known what form the digital euro will take.

　　Nevertheless, the European Central Bank has put forward some basic consensus regarding the vision of a digital euro.

For example, in response to the opinion of some financial professionals that the digitalization of the euro will eventually replace hard currency, European Central Bank President Lagarde has repeatedly emphasized in public speeches that the digital euro will be an important supplement to cash and banknotes, and does not mean that the digital euro will Replace paper money.

　　In fact, the European Central Bank's proposal of the digital euro is not accidental.

On the one hand, the consumption, saving and investment behavior of European people is becoming more and more digital. How to ensure that people trust the euro and adapt it to the digital age has increasingly become an important task for the European Central Bank.

On the other hand, under the pressure of competition from multinational central banks to accelerate the deployment of digital currencies and non-sovereign digital currency projects such as Facebook, the European Central Bank's sense of urgency is also increasing.

European analysts said that if Europe misses the opportunity of central bank digital currency innovation, it means that Europe will lag behind other countries in sovereign digital currencies.

　　In the view of the European Central Bank, the digital euro has great potential for future development, but it also faces considerable challenges.

　　Lagarde pointed out that the digital euro can enhance the convenience of European payments, giving every euro zone citizen the opportunity to have a secure account with the European Central Bank.

But this may also become its main risk, because people will be more willing to deposit deposits in digital euros instead of standard current accounts. This shift may lead to traditional bank deposit runs and financial turmoil.

　　In addition, the European Central Bank’s report published in October last year also mentioned many potential problems with the digital euro, including policy, legal and technical challenges.

To this end, the European Commission and the European Central Bank have recently jointly established a working group to explore key design and technical issues to promote the preparation of the digital euro.

　　In the context of active preparations for various tasks, how long will the digital euro be realized?

Lagarde's recent remarks brought everyone back to reality.

She said that even if the European Central Bank decides to take action in April, the digital euro will not come soon.

In her previous speech, she said that this is expected to become a reality within five years.

　　But in the opinion of European public opinion, this may be too optimistic.

The analysis pointed out that China is the most advanced country in terms of digital currency. China has spent about five years, but it is still in the pilot phase.

The implication is that the digital euro still has a long way to go.

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