ECB Aims for Digital Euro Launch by October 2025 Amid Lawmaker Doubts
The European Central Bank (ECB) aims to launch a digital euro by October 2025, pending legislative approval. Key points include:
- Concerns arise from a recent outage of the Target 2 payment system, causing lawmakers to question the ECB's ability to manage a digital currency.
- The ECB's proposed digital euro will be akin to its instant payments system, TIPS, which operates continuously for smaller transactions.
- ECB President Christine Lagarde emphasized the urgency of implementing the digital euro, highlighting collaboration with EU institutions.
- A decision from the EU's Governing Council will follow the effective legislation regarding the digital euro.
- Countries like Spain have previously expressed skepticism about the necessity of a digital euro, while others underscore its importance in modern finance.
- If approved, the digital euro would align the EU with nations such as the Bahamas, Jamaica, and Nigeria, who have already launched their central bank digital currencies.