ECB official calls for urgency on digital euro amid global CBDC race

The European Central Bank is calling for faster action on the digital euro as regulatory delays risk hindering progress in an environment of increasing global competition.

The digital euro project faces delays in the European Union as the European Central Bank calls for faster action to prevent Europe falling behind global rivals.

Evelien Witlox, ECB’s digital euro project manager, said in an interview with Euronews that Europe needs to accelerate development in order not to be left behind, and that global competitors such as the UK and China are also investigating central bank digital currencies.

The report notes that so far there is no Europe-wide digital payment solution, as 13 of the 20 countries in the Eurozone do not have a national card scheme and instead rely on international players such as Visa and Mastercard. Witlox noted that the European market remains fragmented, with “non-Europeans being the closest to covering all of Europe.”

To address this issue, the ECB launched a CBDC research project in October 2021. However, for the digital euro to progress, the European Parliament and Council must complete the legal framework; This process has not yet been completed nearly 17 months after the introduction of the Euro in Europe. Commission’s proposal. Witlox stated that this delay increased concerns within the ECB.

Although discussions on the digital euro have made progress, Witlox reiterated that it is urgently necessary to “maintain sufficient tempo in this process so that we can ensure that the digital euro is there when we really need it.” Although there is no set timeline for the launch of the digital euro, Witlox remains optimistic and emphasizes that Europe is still “at the forefront of development.” [of a CBDC].”