A joint statement from the two institutions notes that the focus will be reviewing a broad range of policy, legal and technical questions around a possible digital euro. The digital euro will act as a complement to cash and payment solutions supplied by the private sector. The statement notes that: Additionally, the two EU institutions admit that the digital euro’s rollout might potentially face policy hurdles along the way.
Privacy remains major concern
Before announcing the partnership, ECB had closed a public consultation on the digital euro. The consultation began on 12 October 2020, with over 8,000 responses coming in. Although the ECB will publish the feedback at a ta later date, reports indicate privacy was the key concern. Other notable concerns include security and the pan-European for the asset. ECB President Christine Lagarde hinted that the digital euro would come within the next five years in a previous engagement. At the same time, Lagarde is on record criticizing Bitcoin terming it a highly speculative asset that has led to vices like money laundering. She has therefore called for more regulations. Related video: ECB Forum on Central Banking 2020 – Central banks in a shifting world
