Digital euro will be legal currency | Fabio Panetta explains how it will work

Fabio Panetta, member of the board of the European Central Bank, confirms that works for a digital euro would have begun by now – and that in the next 24 months the ECB itself will take care to find channels to make the CBDC having currency legal tender throughout the euro area.

News that for many will mean nothing – but which actually outlines an important path for how the currency will be used in all Europe, Including Italy – with a few digs by Panetta also to the world of Bitcoin.

All about Fabio Panetta’s announcement

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What Fabio Panetta said and why it 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 ECB – would already have particularly clear ideas regarding thedigital euro, i.e. the own version in scope Euro from the CBDC, i.e. digital currencies that are issued by central banks.

A kind of Announcements which has been erroneously associated several times with the world of cryptocurrencies, although in reality the prerequisites for it are lacking. Assumptions that are missing since it is neither about operability on blockchain, nor of one decentralized management e anti-inflativa as in the case of the main cryptocurrencies. It is not clear what kind of networks will be used, although the experiments already seen in the other states allow us to know what the states are trying to achieve.

Someone, as in the case of Israel, led gods test using the network Ethereum, others would seem ready to embark on Ripple, but neither of these two options would appear to be of interest to the central bank in Frankfurt.

Panetta also reiterated that such a path, or the introduction of a digital euro is not to be taken for granted, even if he added that in the next few 24 months the Union authorities will take steps to make it, if necessary, a legal tender currency.

What would legal tender mean?

It would mean, in the event that such a result were actually to be achieved, that theEuro Digital must be accepted like the paper by all economic operators and private individuals residing within the Union.

A move that few expected, after several times the leaders of the ECB had described thedigital euro as an additional possibility for the 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 ECB. A forced approach to digital currencies could also open the doors to the real sector of cryptovalute, given that even the most reticent citizens will have to expose themselves to the world of Wallet management and digital payments with virtual currency.

Panetta spares no digs at Bitcoin

Bitcoin remains the elephant in the central bank room, with the crypto asset par excellence that it is now to all intents and purposes the preferable currency in times of high inflation.

At the ECB they know it well and that’s why Panetta attacks it, focusing on ecology, stating that the consumption of the network ofdigital euro it will be minimal and ignorable by quantity.

This could be good news, but we are sure that a person of Fabio Panetta’s intelligence and preparation knows that in reality the consumption of Bitcoin they are the first safeguard for the security of its network and its decentralization. Something that the digital euro, even by political choice, will never have.

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