EU cryptocurrency will help in the current crisis — experts' opinion

The leaders of the European Union see the digital euro as an opportunity to preserve the value of the common currency for the euro area. «The introduction of advanced technologies into the payment system can reduce the risk of dependence on foreign payment services. This will have good implications for Europe’s strategic financial autonomy,» said European Central Bank President Christine Lagarde, opening the Digital Euro Conference in Brussels.

Active discussion of digital currencies began after Facebook announced the launch of its own cryptocurrency. At the same time, China started experimenting with the digital yuan.

«We cannot allow anyone but us Europeans to say what will happen in our digital market in terms of payments,» said Thierry Breton, European Commissioner for Internal Market, during the panel discussion. — «We lack a pan-European digital payment solution. And if we do not come up with our own solutions, others will do it for us.»

The ECB is currently exploring the possibility of launching a CBDC. After the prototype of the European digital asset has been developed and peer reviewed, the ECB will announce whether the implementation phase will begin. «Through the development of digital public money, we can ensure that Europeans' confidence in our financial system is maintained and that innovation is fostered,» Lagarde said.

The relative urgency of the EU leadership to introduce the digital euro contrasts with the US approach to the digital dollar, which is still a long-term project and is causing a flurry of debate in political circles.

On Monday, November 7, the Queen of the Netherlands supported the development of a European cryptocurrency. «Representatives of the public sector are obliged to ensure the openness and inclusiveness of the financial system so that it better responds to the needs of all groups of the population, » said Maxima Zorregieta Cerruti. The European Parliament is expected to approve the law on cryptocurrencies in February 2023, and in another year, the digital euro is expected to be introduced into the economic circulation of the eurozone countries.