{"id":6427,"date":"2021-06-03T08:22:18","date_gmt":"2021-06-03T08:22:18","guid":{"rendered":"https:\/\/newmoneyreview.com\/?p=6427"},"modified":"2021-06-20T18:54:01","modified_gmt":"2021-06-20T18:54:01","slug":"all-eyes-on-the-digital-euro","status":"publish","type":"post","link":"https:\/\/newmoneyreview.com\/index.php\/2021\/06\/03\/all-eyes-on-the-digital-euro\/","title":{"rendered":"All eyes on the digital euro"},"content":{"rendered":"

The race to develop a central bank digital currency (CBDC) is often portrayed as one of polar opposites: the Chinese hare<\/a> against the US tortoise<\/a>.<\/p>\n

But we should keep a close eye on a third contestant in the race, the eurozone, says Jonas Gross, our guest in the latest New Money Review<\/em> podcast.<\/p>\n

\"\"<\/p>\n

Jonas Gross<\/em><\/p>\n

The digital euro project is one of a package of measures undertaken by the European Union (EU) to ensure the region stays competitive in the increasingly internet-based global economy.<\/p>\n

Last summer the EU introduced a draft regulation for markets in crypto-assets<\/a>, while today the European Commission, the EU\u2019s executive arm, is due to set out its plans for EU-wide digital identity wallets<\/a>.<\/p>\n

These wallets will offer access to a range of services for the bloc\u2019s 450 million citizens and, presumably, be integrated with any future digital euro.<\/p>\n

Although the European Central Bank (ECB) has not yet formally committed to launching a digital version of the single European currency, its decision is expected this month or next.<\/p>\n

Gross, our podcast interviewee, is a project manager at the Frankfurt School Blockchain Centre and a PhD candidate at the University of Bayreuth. His specialist area of research is CBDCs, stablecoins and cryptocurrencies.<\/p>\n

The ECB has been active in preparing for the launch of a digital euro: in October it issued a 55-page report and public consultation on the subject<\/a>, and in April it published a summary of the 8,221 responses to the consultation<\/a>.<\/p>\n

In its reports, the ECB has examined the likely privacy features of a CBDC and its integration into existing payments systems.<\/p>\n

It has also discussed the euro\u2019s future role in international foreign exchange markets, where it is already the second-largest reserve currency<\/a>.<\/p>\n

In the podcast, Jonas Gross explores the critical unknowns regarding the digital euro and suggests where the CBDC debate might be heading. He discusses with New Money Review<\/em> editor Paul Amery:<\/p>\n