Is Digital Euro Coming Soon? French Bank Reveals Its Plans
Some promise in weeks, while others in months. The creation of the digital euro, with respect to user privacy, is expected in the near future, at least according to statements made by the director of the French central bank yesterday. The digital euro, the newcomer to the French central bank, will be officially adopted by central banks in the Eurozone in just a few weeks for institutional transactions. The wholesale digital euro is set to revolutionize.
widespread transaction methods. Revealing the potential of wholesale central bank digital currencies: What are the lessons learned and perspectives? In fact, according to François Villeroy de Galhau, “The European system has begun exploring new technologies for settling central bank money, including issuing the first type of central bank digital currencies.
Eligibility standards and invitations for interest will be issued in the coming weeks, and experiments will be conducted throughout the next year, including trials with real transactions.”
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Unlike retail digital euro, designed for individual use, wholesale digital euro will primarily target financial institutions, companies, and other participants in the financial sector for operations such as interbank transfers and transactions in financial markets.
This announcement highlights a paradox, as institutional projects seem to be progressing faster than the retail digital euro project, which, according to Christine Lagarde, is still at least two years away.
Legal restrictions have started to emerge as well. In addition, several factors contribute to this slowdown. Firstly, there are concerns about user privacy in regulating cryptocurrencies and digital currencies in Europe, so no surprises here. The central bank is working on the digital euro, whether we like it or not. It even appears determined to cater to extremely wealthy institutions looking to tokenize and reap its benefits, with the popular SWIFT network at the forefront.
