ECB's digital currency

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  ECB's digital currency

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  1. The story: The European Central Bank President Christine Lagarde said her institution could launch a digital currency around the middle of this decade if her fellow policy makers give the project the green light in 2021. 
  2. Details: The ECB is about to release an analysis of the 8,000 responses it received as part of a public consultation process on the potential launch of a central bank digital currency. That will be sent to the European Parliament and then the ECB’s decision-making Governing Council will decide in the middle of this year whether to move forward with its practical experimentation. The second decision -- whether to roll out a digital currency -- will be made six months to a year after that, she said.
  3. Not easy: “It’s a technical endeavor as well as a fundamental change,” Lagarde said. “We need to make sure that we’re not going to break any system, but to enhance the system.” Central banks are at varying stages of developing digital currencies. Cash will also continue to be available, she added.  Lagarde also said she will be closely watching the recent roll out of a digital currency by the Bahamas, called the Sand Dollar.
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PT's IAS Academy: ECB's digital currency
ECB's digital currency
Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!
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