Despite the current selloff in cryptocurrencies such as Bitcoin (BTC), the European Central Bank (ECB) says it is proceeding with plans to launch a digital Euro currency this year.
Legislation enabling the creation of a digital Euro still needs to pass in the European Parliament, and many lawmakers on the continent remain skeptical of such a move. However, the ECB is keen to move forward with a digital currency and would be the first major central bank to do so, if all goes as planned.
While other central banks, including in the U.S., Canada and Japan, have studied digital currencies, none have decided to proceed with one, saying the risks are too great. A digital Euro, which would be the European Union’s (EU) central bank digital currency (CBDC), has been hotly debated and met with different views in recent years.
Sense of Urgency
Some countries, such as Spain, have actively fought against a digital Euro even as the European Central Bank has argued that the need for one is pressing. ECB President Christine Lagarde recently said that a digital Euro is “critically important,” and “more relevant and more imperative than ever before.”
Should the European Union decide to issue a digital Euro, it will be joining other countries such as Jamaica and Nigeria that have already launched central bank digital currencies. News of a digital Euro comes as cryptocurrency prices plunge, with the price of Bitcoin falling to $78,250.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 18% in the last 12 weeks.
