The working group in the digital euro reviews for the European Central Bank shared its first findings. The aim of the European Central Bank is to meet the payment needs of European citizens now and in the future with the digital euro.
Fabio Panetta, Member of the Board of the European Central Bank, who met with the members of the Committee on Economic and Monetary Affairs of the European Parliament, announced the first report of the group, which evaluated the possibilities for the digital euro and conducted extensive research. Panetta said that the aim of the research is to decide on the efficiency of a digital currency that can be issued by the central bank in the rapidly digitalizing financial world.
The preliminary findings of the working group show that citizens prefer a digital currency supported by contactless and peer-to-peer applications, without the parties being tied to 3rd parties within the borders of Europe.
While interpreting the results, Fabio Panetta said that physical stores processed more than 40 billion transactions in 2019 and with this trade volume, it is the most important market segment for digital payments. He said that relatively few e-commerce transactions are expected to increase rapidly in the coming years.
The European Central Bank member emphasizes that the use of the digital euro could include tax payments, incentives and social assistance payments. In addition, Panetta also stated that legislators will play a key role in the efficient use of the digital euro.
One of the biggest concerns about forms of central bank digital currency is that governments have tight control over the financial data of their citizens. There are opinions that the ability of governments to monitor citizens' transactions will disrupt the use case. Touching on this issue, Panetta said that complete anonymity from money laundering and terrorist financing risks is not possible. However, it is also thought that cash-like and higher level of privacy can be used.