Asmee Ahuja 
As the European Central Bank (ECB) endeavors to develop a digital euro, its trial phase is commencing and may culminate in an official launch. As this groundbreaking shift occurs, one must ponder: Could a new digital currency potentially jeopardize bitcoin or other existing cryptocurrencies?
The European Central Bank Aims to Modernize Payment Methods
Christine Lagarde, President of the European Central Bank (ECB), aims to modernize payment transactions while keeping cash and existing banking structures intact. She explained that their work guarantees people “access to central bank money in a digital age.” This ensures that individuals and businesses can access safe forms of currency regardless of how payments are made or processed.
Despite the long pathway to digital euro implementation, experts are anticipating its launch before 2026. Following a successful trial stage and evaluation thereof by the ECB, they will make their final decision on whether or not to proceed with this project. The public should anticipate an announcement regarding these plans in just a few weeks’ time!
Although Not Many, Some Details Have Emerged About The Digital Euro
To alleviate the worries of all its critics, the European Central Bank seems determined to establish a few principles that will reduce potential risks. The digital euro would only be available for citizens in restricted amounts up to 3,000-4,000 euros per person and could have limited transactions. This approach with ensure safety and security for those utilizing this new currency. Rather than creating a brand-new blockchain, the new digital euro should leverage existing infrastructures. The ECB is not aiming to challenge Bitcoin or other digital currencies but rather compete with electronic payment services such as credit card companies, PayPal and ApplePay.
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