ECB focus groups’ finding on the possible rollout of the European CBDC, Digital Euro, note the use case of online and physical stores will be best ways of adoption.
At present, around 10 countries’ Central Banks are in the pilot phase of Central Bank Digital Currency (CBDCs), while 100 central banks are in either the development or research phase on CBDCs. Overall steps by the majority of the financial agencies on CBDCs are showing that they are skeptical of the nature and impact of CBDCs on the traditional financial system.
On 30 March, Fabio Panetta, a member of the executive board of the European Central Bank, shared some findings of the research developed by ECB focus groups on the digital currency (CBDC) potential rollout system.
According to Fabio, finding noted that the majority of the people looking to use the digital Euro more likely to use the fiat currency system, which is easy to use in online and physical stores and also easy to pay to each other without any restrictions. So roll out of the Digital Euro should be more likely to the traditional fiat system adoption that took place around 20 years ago.
The introduction of euro banknotes made it possible for us to pay with physical euros anywhere in the euro area,” said Fabio said “So it is no surprise that people expect to be able to use the digital complement to banknotes wherever they can pay digitally or online.”
Findings also noted that the majority of the merchants and small businesses are unaware of the digital Euro system and now they are thinking that entry of such digital technology-based systems will eliminate or degrade the traditional cash and traditional payment system or may kick out cash from the use case.
Fabio also noted that questions on privacy and financial details of the digital Euro users is an important thing and the European Central Bank should consider this thing seriously alongside the development works on the features of this blockchain technology based currency.