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The European Central Bank (ECB) is working to stop the “crypto” phenomenon by launching its own digital euro. During the Money20/20 conference, Evelien Witlox, director of the digital euro at the ECB, expressed the institution’s desire to see this electronic currency on the market, a solution that is considered necessary given the decline in the use of cash and the rise of digital alternatives. The ECB wants to proceed cautiously but decisively.
Digital euro (instead of crypto) to adapt to new habits
No, the European Central Bank has not yet changed its mind about Bitcoin and other cryptocurrencies. According to Crypto.News, Evelien Witlox, a well-known figure in the institution, used her Money20/20 intervention to paint the picture potential implications of the digital euro. As there has been a significant decline in the use of cash in Europe, she suggested thisthe digital euro could become a necessity.
According to her, ” only one in five transactions is still done in cash » in cities like Amsterdam, pushing the ECB to seriously consider it monetary transformation. However, she insisted that while an investment in the e-euro is very likely, it is not yet a set-in-stone decision.
A digital euro would be electronic version of cash, which retains legal tender status. This change would ensure that all merchants accepting digital payments must accept this new form of currency.
The initiative aims not only modernize the payment systembut also to provide more great economic security and independence from foreign payment systems.
Witlox emphasized that this would benefit citizens as it would offer them a new secure and affordable payment method while consolidating economic sovereignty of Europe facing an invasion of payment solutions from elsewhere. Is cryptocurrency one of them?
Security and privacy in the spotlight
The ECB makes no secret that the digital euro is partly a response to concerns that growing dependence on payment services outside the EU does not threaten the security of financial transactions. Crypts are often labeled insecure by our rulers.
Evelien Witlox expressed clear concerns about this dependency, insisting that the digital euro could strengthen economic sovereignty and guarantee the security of public and private payments. Enough to authorize a duel between this asset and Bitcoin.
The ECB is interested that this new means of payment includeswhich enables everyone to participate in the digital economy without barriers to access.
When it comes to security and privacy, Witlox has been very clear: The ECB does not want to become the big brother of financial transactions. Privacy and security are top priorities, as are technical solutions “privacy by design” will be introduced.
This includes options like offline digital euros, which ensure that transactions remain confidential even without an internet connection.
The goal isavoid creating a programmable currency, which could potentially be used to track or control users. Otherwise it will be pure economic totality.
All in all, the e-euro presents itself as a modern solution to the challenges posed by restrictions on the use of cash and the rise of cryptocurrencies, while strengthening Europe’s security and economic sovereignty.
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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.