European Central Bank (ECB) Forms 30 Member Advisory Group for Exploring A Digital Euro
Digital fiat, formally known as CBDCs, is picking up steam as more national banks pay attention to the digital revolution occurring in the financial sector. The latest body looking into CBDCs is the European Central Bank.
ECB Appoints 30-Man Committee
In an October 25 announcement, the ECB launched an all-new Digital Euro Market Advisory Group focused on surveying the likely impact of a digital copycat of the Euro. According to the body, the group has appointed 30 senior business professionals with proven experience in the vast European payments landscape.
The European financial body disclosed that the 30-man committee resulted from the Governing Council’s approval to look into the likelihood of a digital Euro as more consumers turn to digital payment channels daily.
For now, the selected members will work in a personal capacity with their discoveries and findings forwarded to the Euro Retail Payments Board (ERPB). Also, they will be meeting quarterly, with the first of these meetings scheduled for November 2021.
The group will work in an advisory role and collaborate with the Eurosystem to choose a design and distribution channel for the potential digital Euro.
The committee composed of financial experts from companies like IKEA, Bankart, Stripe, BBVA, and Deutsche Bank AG, is expected to assist the ECB to gain an industrial perspective on the proposed project.
Banks Innovate to Address Financial Challenges
The current financial landscape has been criticized for using outdated technology to address current challenges, following recurring inflation issues, which the global pandemic has only exacerbated.
With more investors and savers pivoting to digital currencies to address these bottlenecks, apex banks have been forced to consider launching a digital form of their respective fiat currencies. So far, several efforts have borne mixed results with small island nations like the Bahamas, Grenada, Saint Lucia, and two others going live with their projects.
Asian giant China has been the most prominent CBDC backer and has spent more than seven years working on a potential digital yuan. With the increasing pressure from foreign and domestic landscapes, the ECB joined a list of regions transitioning to a digital settlement.
It formally launched its investigation phase on July 14, with the discovery phase expected to last up to 24 months.