E-Euro: Will The ECB Introduce A CBDC Soon?

Will we see an E-Euro soon? So, is the ECB about to introduce a CBDC?

There have been some rumors around a CBDC/ E-Euro recently. Now things are getting more concrete.

CBDC experiment completed

Banque de France has completed a central bank digital currency pilot for securities transactions. The bank collaborated with SEBA, a swiss crypto bank. Today, the bank announced the successful completion of a CBDC experiment with SEBA. 

The experiment used a CBDC to simulate the settlement and delivery of listed securities. Banque Internationale à Luxembourg and Luxembourg central securities depository were involved in the experiment. 

So, European banks are experimenting with CBDCs more often nowadays.

Companies force Central Banks to introduce CBDCs

Central banks fear coins like Facebook’s Diem coin. That is no secret anymore.

Central banks are forced to introduce CBDCs sooner or later.

This is got clearer when the Financial Times interviewed ECB executive Fabio Panetta. He stated that the digital euro was more capable of protecting privacy than private alternatives.

It is hardly imaginable that companies like Facebook introduce their own currencies while Central Banks standstill and miss out on innovations. Moreover, Fabio Panetta once again confirmed that the ECB is working on a CBDC:

“We’re moving into a digital era, so by introducing a digital euro, we would be changing how people can access our balance sheet and use our means of payment.”

Fabio Panetta, ECB Executive

ECB works on CBDC – but is it missing out DeFi?

Crypto, and especially DeFi, is getting stronger every day. Exciting developments are:

  • KYCed AAVE pools
  • Institutions joining the DeFi movement
  • Banks like ING that work on DeFi integrations

But is the ECB realizing how big DeFi could become one day?

It does not seem so!

Central Banks are more focused on companies like Facebook that could launch their own cryptocurrency. In the annual report of the ECB, DeFi was not mentioned. Not even once!

That’s remarkable as ING published a white paper explaining how DeFi could disrupt banks even more than bitcoin. Also, DeFi has evolved from a small niche towards a crucial role in the crypto sector.

So, is the ECB missing out on DeFi?

Time will tell!

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