The digital euro will be the legal tender | Fabio Panetta explains how it will work
Fabio Panetta, member of advice from European Central Bank, confirms that works for a digital euro has already started – and that over the next 24 months, the BCE himself will take care to find canals to do the CBDC have change legal tender throughout the euro area.
News that won’t mean anything to many – but actually describes an important path for how currency will be used throughout. Europe, Including Italy – with some excavations by Panetta also in the world of Bitcoin.
What we believe, counter-tendency, is that in reality these movements of the BCE – which are grafted onto a path already covered by different states – in reality they will only push theadoption of cryptocurrencies. Cryptocurrencies in which we can invest with the EToro platform – go here to get a demo account always free and with all the features already active – intermediary who offers the best 40 current cryptos in the price list, seasoned with exclusive services that cannot be found elsewhere.
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What Fabio Panetta said and why this is important news for our economic future
According to what was reported by the newspaper Bloomberg, Fabio Panetta – who is a member of the board of directors of BCE – would already have particularly clear ideas on thedigital euro, i.e. own version in scope EUR from CBDC, i.e. digital currencies issued by central banks.
A kind of Advertisement which has been repeatedly wrongly associated with the cryptocurrency world, although in reality the prerequisites for this are lacking. Assumptions missing since it is not a question of operability on blockchainneither of a decentralized management And anti-inflation as in the case of major cryptocurrencies. It is not clear what kind of networks will be used, although the experiences already seen in other states allow us to know what states are trying to achieve.
Someone, as in the case of Israel, lead the gods test using the network Ethereum, others seem ready to start Ripple, but neither of these two options seems to interest the central bank in Frankfurt.
Panetta also recalled that such a path, or the introduction of a digital euro should not be taken for granted, although he added that in the next 24months the Union authorities will take measures to make it, if necessary, a legal tender.
What would legal tender mean?
This would mean, in the event that such a result is indeed achieved, that theDigital euro must be accepted as the paper by all economic operators and individuals residing within the Union.
A gesture that few expected, after several times the leaders of the BCE had described thedigital euro as an additional possibility for citizens ofunion and not as an obligation. This will result in a very strong push in its adoption, which however, at least according to our reading, could have the opposite effects compared to what the poppies of the BCE. A forced approach to digital currencies could also open the doors to the real sector of crypto-currencies, given that even the most reluctant citizens will have to expose themselves to the world of portfolio management and digital payments with virtual currency.
Panetta spares no digging at Bitcoin
Bitcoin remains the elephant in the central bank room, with the quintessential crypto asset that it is now for all intents and purposes the preferred currency in times of high inflation.
At BCE they know it well and that’s why Panetta attack, with an emphasis on ecology, claiming that the consumption of the network ofdigital euro it will be minimal and ignorable in quantity.
This could be good news, but we are sure that a person of the intelligence and preparation of Fabio Panetta knows that in reality the consumption of Bitcoin they are the primary guarantor of the security of its network and of its decentralization. Something the digital euro, even by political choice, will never have.