The EU wants the digital euro to be compatible with other national cryptocurrencies

The President of the European Central Bank reported on the progress of research on the digital euro and stated that it should be interoperable with the digital currencies of other central banks. At the 46th meeting of the International Monetary and Financial Committee, ECB President Christine Lagarde announced the start of the second year of active research on the digital euro. Currently, the regulator is exploring options for the design and distribution of cryptocurrencies. Lagarde emphasized that the ECB’s digital currency will not replace conventional money, but will only complement the main continental currency, the euro.

The current phase of CBDC research should last until October 2023. By this time, it is planned to develop the optimal concept of the digital euro. At that time, it will become clear how financial intermediaries will be able to provide services using the state digital currency. Upon completion of the current stage of research, the ECB Governing Council will decide on the need to move to the next stage. It will include the creation of integrated services, testing, and experiments with the digital euro with the participation of real users.

The main objective of the digital euro will be to enable domestic transactions within the European Union. However, if a European cryptocurrency is launched, it should be compatible with other digital currencies of central banks.

Lagarde emphasized that foreign users may be granted access to the domestic retail CBDC on certain conditions. The official called on international regulators to work together to research and test state-owned cryptocurrencies.

Earlier, we reported that due to the energy crisis in Europe, officials want to ban cryptocurrency mining. Given the «current energy crisis and the increased risks predicted for the coming winter,» the European Commission called on EU members to crack down on cryptocurrency miners and reduce the cost of electricity for cryptocurrency minting. In addition, the European Commission insists on the abolition of tax breaks and other bonuses for companies specializing in Proof-of-Work.