The European Central Bank says that it is examining the possibility of a digital euro that will be a legal tender in the European Zone.
A member of the ECB Executive Board, Fabio Panetta, says that the Central Bank would explore the digital currency’s viability within two years.
Panetta argues that the digital euro will not be redundant since ECB will guarantee its usability and cost-effectiveness. The economist maintains that the digital euro will be attractive to users.
The Central Bank adds that the digital euro would consume less energy compared to Bitcoin, which makes it environmentally friendly.
ECB President Christine Lagarde earlier commented that a digital euro issued by a central authority should be the safest form of money and prevents adverse impact on financial stability and monetary policies.
The digital currency and cryptocurrency are reportedly different since the former lacks decentralization, under the complete control of the Central Bank.