Patrick Hansen, the Director of EU Strategy and Policy at stablecoin issuer Circle has shared some key predictions concerning the proposed Central Bank Digital Currency (CBDC) for the European Union. While the CBDC, also dubbed the Digital Euro is yet to be launched, Hansen said should it be launched, it will exist in three different forms.
He gave these predictions following his participation in a roundtable featuring the Digital Euro. As he noted, the CBDC will exist first as a Central Bank alternative to cash and as a tokenized bank deposit. Additionally, the Digital Euro will take the form of a stablecoin or regulated e-money.
According to Hansen, despite the efforts of the government to ensure a proper development of its CBDC, the private sector is better equipped to deliver the much needed payment solution involving stablecoins.
With many nations, numbering up to 110 now deeply involved in CBDC research and development, the EU is hoping to stay on top of this next level payment innovation. After the bloc’s Parliament passed the Markets in Crypto Assets (MiCA) Bill earlier this month, the region has earned the tag of one of the most proactive regions tilted to innovations bothering the Web3.0 ecosystem.
Potential Timeline for Digital Euro Launch
Despite the proactive engagement in research and consultation from the European Central Bank (ECB), there is no decision on whether or not it will proceed with the development of the Digital Euro just yet.
Hansen also commented on this, noting that the Digital Euro will “enter the broader political arena towards the second part of this year.”
Specifically, the said the EU wide negotiations at the Commission level will resume this year with a crucial decision on whether to proceed with the project now on the horizon. According to the Circle Chief, there has been confirmation that crucial aspects of the proposed CBDC such as its holding limits and other features are bound to be decided politically.
According to earlier reports by Coingape, ECB President, Christine Lagarde has reiterated time and again that there is a need for a borderless Digital Euro. The industry enthusiasm is high, and all eyes are fixed on the next steps from the EU.
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