More countries all over the world are trying to explore payment technologies, particularly digital currencies. It’s visible in the Greater China Region’s beta tests earlier this year. As of today, even the European Central Bank is headed towards that direction by applying to trademark the term “digital euro.”
The primary reason for this is because government officials are launching an official assessment. They’ll assess the setbacks and benefits of a digital euro.
Application For The Trademark
The official application for the trademark happened last September 22, 2020. The legal representatives of the European Central Bank, Bock Legal handled the application. The spokesman of ECB later confirmed this.
Digital Currency Is A Global Trend
This is not the first of its kind. Other countries were hopping on the trend of currency digitization. Numerous central banks from different countries are thinking of adapting digitized economies. Some of the countries include China, Tunisia, Turkey, and the Mashall Islands
The reason why the European Central Bank is moving towards this direction is because their own policymakers believe that there’s a need to stay on top of economic trends. This is supported by protectionist policies and the constantly evolving technology.
Publication Of Assessment
The official assessment is by a team of experts. They’re from numerous central banks across the region of Europe. The president of the European Central Bank Christine Lagarde has repetitively mentioned that the region should try out a digitized currency. She said in a speech last month that there’s still no concrete decision on the digital euro transition. She also said that alongside other countries in the world, the risks, benefits, and impacts are continuously being assessed. There will undoubtedly be plenty of struggles that need to be remedied.
Is The Digital Currency Good Or Bad?
Analysts say that the transition from traditional currency to a digital one is definitely a struggle. It’s hard to develop a sovereign cryptocurrency simply because there’s not much familiarity with how it works.
Another possible barrier are the different technical challenges. Some of these challenges include security, consumer protection, and cybercriminals.
Despite the risks, there are a lot of potential benefits to this. It preserves the public good that the euro already gives to the people. It includes access to a universally accepted and risk-free mode of payment. The digital euro will also help the general European region to keep up with the technological developments in the world.
More countries are transitioning into cashless and purely digital payment methods. There are e-wallets that house converted physical cash. They use it to scan QR codes and perform transactions to different establishments. Based on beta versions, the e-wallets are different from personal bank accounts.
This digitized currency is also helpful in light of the pandemic setting. Cashless transactions effectively minimize the risk of transmitting the disease by preventing physical contact. Since there are no clear signs that the pandemic will be quenched any time soon, a digital currency will surely come in handy.
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