The digital version of the Euro currency will be used for free and available to all Europeans. But what is, the main concern is that the Central Bank limits the use and scope of this currency. So, what will be done now is for the best.

The ECB is working on a digital version of its currency and is currently outlining the broader design. This also alleviates concerns that digital currency could disrupt the financial system and give the central bank too much data on citizens.

Meanwhile, from the various opinions addressed, preparing this currency is already in a reasonably critical phase. This will provide a direct claim on the central bank's balance sheet, just like cash. But this is believed to be deemed safer than deposits from commercial banks.

For now, the release of digital currency may take some time. So the central bank claims they still need advice for developing this currency. The EU finance minister also gave specific guidance to the ECB.

EU Finance Ministers Also Provide Advice For Digital Euro Creation and Release: Mandatory Offer Privacy!

European Finance Ministers have called for the digital Euro to offer privacy and transparency. Central bankers have also started tests for this project this year. Meanwhile, the idea that has existed since two years ago is still in the advanced development phase.

The EU Finance Ministers and the public have started to realize the digital Euro itself since the idea was launched in October 2020. A formal investigation will begin in 2021. So this involves finance ministers of countries within the European Union using the common currency.

Notably, the European Central Bank said that it would continue to serve as an anchor for the monetary system of European countries. In the statement released by the central bank, it is clearly stated:

"To succeed, the digital Euro should maintain and maintain users' trust, for which privacy is a key dimension and a fundamental right. At the same time, the Euro Group must also consider that the design of a digital euro should comply with other policy objectives"

The intended policy objectives are varied, including money laundering, illicit financing, tax evasion, and even sanctions compliance. So the European Union group suggested one solution that could allow those to perform less risky transactions and more privacy.

So from now on, it is believed that the European Commission intends to table a proposal in the first half of this year. This could be the moment for a Euro digital release as well. 

But in the meantime, what will be done is the European Central Bank in the process of running a prototyping exercise. The five companies selected were CaixaBank, Worldline, EPI, Nexi, and Amazon. 

The European Central Bank will certainly be reasonable in choosing the bank responsible for it. So that in this condition, what is sought is a bank that has a part in market research.

The Executive Board Member of the European Central Bank Even said that the Digital Euro Would Never be Programmable

This condition also gives special attention to some citizens, including even the executive board members of the European Central Bank. He said that digital banks would not allow restrictions to be placed on how funds could be spent by the European public later.

Fabio Panetta also mentioned that the digital Euro might run on something other than decentralized technology and underpins which crypto assets can be used. So this use must be based on a mature system, and the central bank is discussing that.

The European Central Bank stated the upcoming digital release of the Euro. However, concern after concern also emerged, including privacy and programs. So, what they will try is connected to a more mature system in all sectors.