ECB: Europe Must Prepare to Launch a Digital Euro ‘if and when’ Necessary

ECB council member Fabio Panetta said the bank should prepare for a digital euro issue that complements securities “if and when” necessary.

Major central banks around the world are studying digital versions of their currencies in response to demand for electronic payments and to counter competition from private currencies such as Bitcoin and Facebook’s proposed currency, Libra.

In a study published on Friday, the European Central said that the digital euro will help in the event that citizens give up cash, if the rest of the payment methods are not available.

“We should be ready to release a digital euro if and when developments around us make this necessary,” Panetta said.

The European Central gave itself until the middle of next year to decide whether to proceed with the project or not. The project is currently open for public consultation.