European Central Bank agrees on key points on the digital euro

According to newspaper information, the European Central Bank (ECB) has agreed on important cornerstones of its concept for a digital euro. The crucial report for the Governing Council is almost ready and the currency should be called “Digital Euro”, the “Handelsblatt” reported on Wednesday, citing central bank circles.

The digital currency should probably not be based on blockchain technology. The ECB wants to secure the trademark rights for the name "Digital Euro". An ECB spokesman did not want to comment on the report.

The central bank still has to decide

The euro central bank has not yet decided whether to give the green light for the project of a digital euro. According to earlier ECB information, this should happen around the middle of the year. According to estimates by central bank chief Christine Lagarde, it will be around four years before a digital currency can be introduced. Central banks around the world are currently examining the introduction of digital versions of their currencies in order to modernize payment transactions. The threat of competition from cyber currencies from international technology groups - such as Facebook's planned Diem crypto currency - also plays an important role in the considerations.

According to newspaper information, users of the Digital Euro should not receive any interest for it, nor should there be any negative interest. For the digital currency, there should be conventional accounts under the control of the ECB. It is also planned that each citizen can only store a maximum amount of the digital euro in an electronic purse (wallet). A sum of 3.000 euros is up for discussion. The wallets should be offered by banks or other financial service providers in connection with a conventional account. (apa / reuters)