The EU considers using Stellar Lumens to launch its CBDC according to a Reddit post where the community discussed the most recent developments on the issuance of central bank digital currencies so let’s find out more in our latest Stellar news.
According to the statements by the President of the ECB Christine Lagarde, a decision on the project will be made later this year. Lagarde had an unfavorable position on crypto and CBDCs but the president was quite in favor of stablecoins. However, in an interview with Bloomberg, Lagarde noted that the decision on whether to approve the Digital Euro will be made by the council. Outlining the roadmap for the digital euro, Lagarde noted that they will soon publish an analysis of the consultation process that was opened for the project. The institution will also bring the results to the parliament and will wait to receive a green light to pilot the CBDC.
Lagarde estimated that the assessments will last about a year as the EU considers the options and said:
“Because it’s a technical endeavor as well as a fundamental change because we need to make sure that we do it right. We owe it to Europeans; they need to feel safe and secure. They need to know that they are holding a central bank-backed […] equivalent of a digital banknote with the same level of security. […] We need to make sure that we are not going to break any system but enhance the system.”
Lagarde noted that the intermediaries which depend on the system will be able to continue with their operations in the institutions and will coexist with the CBDCs. The backbone of the project is to create an improved payment system that will be safe and secure for the Europeans. In the community, many users speculated about a possibility of a CBDC that can be deployed on top of the Stellar Lumens blockchain. One user involved in the discussion noted that the institution could choose the option to take advantage of the benefits of a public-private partnership:
“they are not collapsing the current system to go secretive again. the secrecy of the whole current financial system is its biggest issue and the reason nobody trusts the bankers. (…) the money is going to have to be a public utility, trusted by everyone.”
All users in favor of the idea outlined that Stellar meets all the possible requirements described by Christine Lagarde which are cross-border remittance, settling transactions, and medium of exchange capabilities.
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