The Digital Euro in danger, will it get into effect?

The Digital Euro in danger, will it get into effect?

The traditional banks point to possible problems with the Digital Euro. Find out all the details in this article, you won't regret it! Keep reading for more information. 

The traditional banks point to possible problems with the Digital Euro. Find out all the details in this article, you won't regret it! Keep reading for more information. 

It is still necessary for the European digital currency to come into effect. As much as Christine Lagarde, president of the ECB, has already given it the go-ahead, the project will not be underway until 2025, where it would only be launched at that time, with a design and research phase that will last approximately 2 years.

As much as Christine Lagarde, president of the ECB, has already given it the go-ahead, the project will not be underway until 2025

Part of this research will focus on how the European central bank's digital currency will be distributed, its impact on the market, and the changes that must be made in terms of regulation.

But for some, an alarm signal is already going off: can the Digital Euro put an end to traditional banking?

The ECB explains that cryptocurrencies (such as Bitcoin) "are volatile and are not backed by any reliable institution." But the digital euro has your backing and it will have legal value. It also highlights that in no case will it replace cash, but rather complement it.

Can the Digital Euro end to traditional banking?

It is an electronic form of money issued by the Eurosystem (the ECB and the national central banks) that all citizens and companies will be able to use, like banknotes, but in digital format.

One of the goals is to make daily payments quick and easy. But also safer. To use it, a report from N26 explains, you will have to create a digital wallet (a wallet) but it does not have to be linked to any bank account.

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