The European Central Bank (ECB) and the United States are critically analyzing issuing central bank digital currencies (CBDCs). Two of the most important economies on this planet are analyzing the prices and advantages of a digital forex. While the US remains to be analysing this risk, the EU may make a decision as quickly as in January 2021.
Will the EU and the US Launch Digital Currencies?
In a recent event held by the European Central Bank (ECB), the president of the establishment, Christine Lagarde, knowledgeable that a decision to launch a digital euro can be made in January 2021. However, Lagarde emphasised that the ECB will not be ‘racing to be the first’ issuing a CBDC.
Christine Lagarde said about it:
“At that point in time, we will make the decision as to whether or not we go forward with the digital euro. This is a decision that will be taken collectively.”
The ECB is analysing totally different issues, together with customers’ privateness, anti-money laundering and terrorism financing. Lagarde has also in contrast China’s digital yuan and Facebook’s libra and their decision to launch digital currencies. She talked about that the development of these currencies needs a number of years of development.
“This is a project that will probably take us two, three, four years before it is launched,” she said.
Jerome Powell, the Chair of the U.S. Federal Reserve (FED), said that they’re dedicated to evaluating the prices and advantages of a digital forex. This is making reference to a digital US greenback.
The United States appears to be a step behind the EU in phrases of issuing its own CBDCs. This was not the first time that the US FED mentions their intention to work on a digital greenback. According to the Federal Reserve Board Governor, Lael Brainard, it is vital for the FED to be on the forefront of analysis and coverage development in phrases of digital currencies.
There are a number of international locations investigating the implementation of central bank digital currencies. Not all of the initiatives are coming for developed international locations. Emerging economies are also researching how CBDCs may assist implement financial insurance policies. Some of the international locations working on these initiatives embody Uruguay, Canada, Ukraine, and the United Kingdom, amongst others.
Although none of them has but issued central bank digital currencies, analysis on the matter are being carried out. There isn’t any nation on this planet to efficiently situation a Central Bank Digital Currency.