ECB is considering four scenarios for the launch of the digital euro

The main financial regulator of the EU, the European Central Bank (ECB), said that it is considering four scenarios that will allow the issuance of the national currency of the common European space. Among them: an increase in the demand for electronic payments, a significant drop in the demand for cash, the launch of private digital currencies, the massive issuance of national currencies in digital form by other central banks.

So, in the report published by the regulator, it is noted that the authorities should be ready to issue a digital version of the euro, if the need arises. Electronic money, in particular, can come to the rescue in the face of the rapid spread of coronavirus infection, the second wave of which is currently being observed. The authorities note that banknotes only contribute to the transfer of a new virus, while the emergence of new payment technologies will help to conduct transactions in a simple, universal and secure way.

It is worth emphasizing that representatives of the ECB are confident that cryptocurrency will not replace fiat funds, but will only complement their functionality. “Digital money will become a catalyst for Europe to lead in supporting the digitalization of the single eurozone economy,” the officials concluded.