ECB Confirms Digital Euro is Technically Ready, Awaiting Legislative Approval
The European Central Bank (ECB) has announced that the digital euro is technically ready and is now awaiting legislative action by the European Parliament and the European Commission. According to ECB President Christine Lagarde, the development of the digital euro is progressing well, with member-state discussions advancing positively.
Piero Cipollone previously projected mid-2029 as a realistic timeline for the rollout of the digital euro. However, actual legislation will be formulated following the European Council's input. Subsequently, the European Parliament will review and may amend the European Commission's proposal.
The digital euro is intended to coexist alongside cash and will not replace fiat money. It aims to be user-friendly, low-cost, fast, private, and available for both online and offline usage.
Regarding crypto-assets, EU stablecoins fall under the Markets in Crypto-Assets Regulation (MiCA). These regulated stablecoins are considered safe alternative payment forms. Nonetheless, the ECB warns about potential risks associated with multi-issuance of stablecoins and will continue to monitor any risks to the financial system and holders.
Separately, the ECB has stated that inflation is projected to reach the 2% target by 2028 and that interest-rate decisions will be driven by data.
