16 May 2022 17:22, UTC
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The collapse of the digital asset market has put many users at risk, with some cryptocurrency companies on the verge of bankruptcy and closure. Only a lazy person didn’t comment on the situation, so representatives of the traditional financial sector were not an exception. Thus, Fabio Panetta, member of the Executive Board of the European Central Bank, shared his views on the developments on the virtual money market as a part of his recent speech at the National College of Ireland. Among other things he made an important statement about digital euro, noting that its launch can take place in 2026.
Panetta devoted half of his speech to the digital euro. In his opinion, the launch of a stable virtual currency will be a turning point for the European and global economies. The ECB executive board member added that direct testing of the digital euro will begin in 2023.
By the way, as part of the testing of the stable asset, Panetta stresses, the first priority for the department’s specialists will be to find and explore opportunities through which to provide access to the digital euro to citizens of all European countries. The question, according to the official, is one of the most important, because the procedure of introducing the coin in each state will require an individual approach, they say, will need to take into account all aspects, ranging from the current legislation of a particular country, ending with the general attitude of citizens to cryptocurrencies.
Given the huge number of pitfalls, the process of testing the digital euro, according to Panetta, could take up to three years.
The official also added that between 2023 and 2026, the European Central Bank, through various experiments, will have to find a single payment gateway (payment solution) through which all Europeans can use the digital euro seamlessly and smoothly.
Speaking to students and professors at the institute, the ECB representative also commented on the recent drop in Terra coins and the abolition of the USD peg.
“Stablecoins could never be called a safe and ‘risk-free’ investment instrument. Nor can they be called such today. Just like other cryptocurrencies, including bitcoin, there are risks involved,” Panetta said.
As a reminder, we previously reported that the European Central Bank supported the idea of tightening regulation of the digital industry.
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