Payment service providers & banks getting invitation from ECB: CBDC

The European Central Bank invited banks and other relevant companies to contribute to the Digital Euro project.

The European Union is highly concerned about crypto and blockchain. In particular, the EU’ MiCA proposed its strict framework bill on the crypto industry. However MiCA and lawmakers introduced some changes in the proposed framework in response to controversy. But the overall situation is not good for crypto future because of bad stances by government agencies.  

In the present time, the EU is working stepwise research and experiment on Central Bank Digital Currency (CBDCs), or Digital Euro. However nothing is 100% pre planned for the adoption and introduction of Digital Euro but still the European Central Bank (ECB) working its best to figure out the possibility to adopt CBDC.

Earlier today, Eurosystem invited all the Payment service providers, banks and other relevant companies to share and contribute to the Central Bank Digital Currency (CBDC) prototype, as per interest and potential. 

For the same, all the companies or banks will have to fill the application within 20 May. Only 5 banks or payment service provider companies will be chosen as per their potential and ability, however it will not require past experience on prototype of CBDC. 

After the completion of the hiring of banks or relevant companies, the EU will do a perfect experiment with the prototype of Digital Euro and after that they will decide to do development on real digital Euro. Real development work may take place in 2023. 

This process to go with CBDC is a very lengthy process and many people raised questions against such lazy steps but here EU’ Central Bank doesn’t want to take any risk with the adoption of this innovative technology.

In the present time more than 80% Central Banks are involved in the central bank Digital Currency (CBDCs) research and development. In particular Nigeria and China are leading with their eNaira and e-CNY in this race.

Read also: 15M digital yuan distribution plan in China: Chinese CBDC aidrop