European monetary authorities announced on October 30 (local time) that they may begin pilot operations of the central bank digital currency (CBDC) "digital euro" in 2027.
According to Bloomberg News, the European Central Bank (ECB) stated, "Assuming lawmakers complete the legislation next year, pilot operations and initial transactions will be possible in 2027."
European authorities have been pursuing the introduction of the digital euro to establish their own payment infrastructure and reduce reliance on American companies such as Visa, Mastercard, and PayPal. The European Commission released a draft bill in 2023 that included regulations for the digital euro, but it has not yet been officially enacted into law.
In the United States, the so-called "Genius Act" was enacted in July, stipulating that only authorized entities can issue and distribute stablecoins pegged to the dollar. China has been at the forefront of this field, having piloted the digital yuan in select regions since 2019.
The ECB commented, "There is a growing urgency for a public digital payment method to complement cash," and added, "The digital euro will protect freedom of choice and privacy, while safeguarding European monetary sovereignty and economic security."
However, in some countries where cash transactions still account for a large proportion due to concerns about personal data exposure, there remains considerable skepticism toward the digital euro.
According to a survey conducted last year by the Bundesbank (Germany's central bank), 49% of respondents said they would not use the digital euro even if it were introduced. In a French public opinion poll conducted in April, 44% said they had never heard of the concept of the digital euro. The financial sector argues that the amount of digital euro holdings should be limited, citing concerns that deposits may flow out of private banks.
According to the think tank Atlantic Council, three countries-The Bahamas, Jamaica, and Nigeria-have fully adopted digital legal tender, and 49 pilot projects are underway worldwide.
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