Digital Euro Project Adds Italian Payment Provider Nexi
Several countries have started planning to launch their central bank digital currency (CBDC). In July, the Governing Council of the European Central Bank (ECB) launched the investigative phase of a digital euro project.
The instruction phase of the digital euro project is scheduled to last 24 months. The design will be based on user preferences and technical advice from traders and intermediaries.
“We will engage with the European Parliament and other European decision-makers and inform them regularly of our findings. Citizens, merchants and the payments industry will also be involved, ”said Fabio Panetta, member of the ECB’s board of directors and chairman of the high-level task force on the digital euro.
According to ECB President Christine Lagarde, “our work aims to ensure that in the digital age, citizens and businesses continue to have access to the most secure form of money, central bank money.
A digital euro must be able to meet the needs of Europeans while preventing financial instability and illegal activities. This will not prejudge any future decision on the possible issuance of a digital euro. The digital euro is intended to supplement cash and not to replace it in 19 countries in the zone.
Nexi joins the CBDC project
Italian payments company Nexi is one of the largest payment companies in Europe and is working with the European Central Bank to create a digital euro.
Nexi provides payment services for other banks, handling 41.3 million payment cards and approximately 2.7 billion transactions each year. They also provide services to merchants and digital banking groups. Nexi’s position is that central bank digital currencies can be very important to the future of payments, on par with stablecoins.
“We are collaborating with the European Central Bank and contributing to the design of the future digital euro because we believe it can be a positive force in the evolution of digital payments,” said Nexi CEO Paolo Bertoluzzo in an interview with Money 20/20 conference.
Regarding the nature of the collaboration, Bertoluzzo said in a statement: “We are starting to talk about a new version of cash. It’s their way of thinking.
Panetta, however, advised to consider the possible risks associated with the CBDC in the midst of the advantage.
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