European central bank pushes for CBDC launch in 2029: Report
Analysis
Price Impact
MedThe news pertains to the long-term development of a major central bank digital currency (cbdc) in europe. while the launch is years away, the ongoing progress and debate can influence sentiment regarding decentralized cryptocurrencies, often perceived as competition or a precursor to increased regulation.
Trustworthiness
HighThe report is from bloomberg, citing ecb officials, and republished by cointelegraph, indicating reliable sources regarding the central bank's plans.
Price Direction
NeutralA cbdc launch in 2029 is too far out for immediate price action. in the long term, cbdcs can be viewed as competition to decentralized cryptos or as a tool for increased financial control, which is generally bearish for the crypto market. however, significant skepticism and delays around privacy concerns also exist, providing some counterbalance. for now, the market reaction is likely neutral due to the distant timeline and ongoing uncertainties.
Time Effect
LongThe targeted launch date for the digital euro is 2029, meaning any direct market effects related to its implementation will be a long-term consideration. however, the ongoing legislative process and public debate will continue to be a recurring theme.
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Article Content:
Stephen Katte 5 minutes ago European central bank pushes for CBDC launch in 2029: Report Nigeria, the Bahamas and Jamaica are only three jurisdictions with launched CBDCs, according to the American think tank, the Atlantic Council. Listen 0:00 25 News COINTELEGRAPH IN YOUR SOCIAL FEED The European Central Bank (ECB) is reportedly aiming to launch its digital euro in 2029, provided a legal framework can be hammered out. Officials working on the central bank digital currency (CBDC) will continue to lay the groundwork after the current preparation phase concludes this month, Bloomberg reported on Wednesday, citing people familiar with the matter. ECB officials have been exploring a potential rollout of the digital euro since 2020, entering the preparation phase in late 2023 as part of their plans. Preparatory work is expected to continue at a meeting this week in Italy, according to Bloomberg’s sources, in the hope that a legal framework will be agreed upon by lawmakers and passed within the next four years. EU lawmakers still can’t agree whether a CBDC is a good idea The project has faced significant skepticism from banks, lawmakers, member states, and end-users, mainly due to concerns around privacy and other risks. Legislation has been before the European Parliament since 2023, and has faced delays amid political concerns and the 2024 elections. In September, ECB Board member Piero Cipolloni flagged the middle of 2029 as a possible launch date and predicted that the European Parliament would likely come to a consensus on a digital euro by May 2026. Cipolloni said a digital euro would ensure all Europeans have access to free, universally accepted digital means of payment, even in the event of major disruptions such as war or cyberattacks. Related: EU exploring Ethereum, Solana for digital euro launch: FT CBDCs around the world Only three CBDCs have officially launched, according to the American think tank, the Atlantic Council. It’s CBDC tracker lists Nigeria, the Bahamas and Jamaica as the only three jurisdictions with an active digital token. At the same time, there are another 49 countries in the pilot phase. Only three jurisdictions have launched a CBDC, but many others are exploring the option. Source: The Atlantic Council Information compiled by the Human Rights Foundation, which unveiled a CBDC tracker in November 2023, cites improved payment efficiency and expanded financial inclusion as potential benefits of CBDCs. Drawbacks are listed as the currency’s potential to infringe on privacy and open up new avenues of government corruption, among other concerns. Magazine: Bitcoin flashing ‘rare’ top signal, Hayes tips $1M BTC: Hodler’s Digest, Oct. 19 – 25 # Altcoin # Europe # Privacy # Adoption # CBDC # Regulation Add reaction