The European Central Bank (ECB) is testing the digital euro
Sci-Tech

The European Central Bank (ECB) is testing the digital euro

The European Central Bank (ECB) is testing the digital euro but will not introduce it before the end of 2026, Bundesbank executive board member Burkhard Balz said.

“By the end of the trial period, next fall, the ECB Council, in cooperation with European legislators, will decide on the implementation phase of the digital euro,” Balz said at a conference in Frankfurt on Wednesday.

The digital currency can be used after that, but “not before autumn 2026”.

In July last year, the ECB decided to launch a two-year review of the conditions for the digitization of the euro, including technological and legal conditions, for example those on data protection, and only then take a decision.

If there is one, the digital euro will only be a variant of cash, which will of course remain in circulation. The digitization of the euro is a possible response to cryptocurrencies such as bitcoin and Ethereum, but with the advantage of stability as it will be under the authority of the ECB.

Digitized payment solutions are already in the domain of high-tech companies.

“On the contrary, the digitized euro can offer citizens a stable means of payment”, said Balz.

In addition to the ECB, several other central banks are also exploring the possibilities of digitizing currencies.