Estonia Central Bank highlights positive results of digital currency testing

Karthik Subramanian

The Estonian Central Bank, which recently conducted research and experiment on the use of digital currencies, has concluded that a digital euro would be good for the financial and economic system as it can support a very large number of payments at the same time along with other advantages.

Estonia

Eesti Pank, the name of the central bank in Estonia, had worked with the European Central Bank (ECB) to study the effect and possibilities of introducing a digital euro alongside the existing monetary system. The bank had worked along with the central banks of Spain, Germany, Italy, Greece, Ireland, Latvia, and the Netherlands.

The bank had concluded the research on a positive note saying that the digital euro could support a huge number of payments at the same time and also leave a very less carbon footprint on the environment when compared to the card payment system that is growing right now.

It is reliably learned that over 60 countries have their central banks conducting a variety of research and experiments on the use of digital currencies and these findings should be a boost for the proponents of digital currencies and could spur on further research and development of the same.

The ECB has not yet signalled the launch of a digital euro and it is believed that it could still be at least a couple of years before digital currencies come into force in any country. But the ECB has given the go-ahead for research and experiments to continue on the digital euro while the technology or the blockchain to be used is likely to be decided later.

The experiment is expected to feed into the next phase of the digital euro programme where select users and banks are likely to be introduced into the mix, their views sought and they are also likely to participate in the testing and give feedback as well as challenges that are likely to be faced when a digital euro is launched.

One of the challenges is to see whether the digital currency would replace cash in the short term but that seems to have been removed and it is more likely the digital euro would also exist along with cash with the banks guaranteeing the value of the digital euro just like normal cash. It is believed that the launch of the digital euro would reduce the use of cash and also card payments and these digital wallets that are used to store the digital euro would cause much less hard to the environment in the long run.

Read this next

Industry News

Celsius $750m insurance claims are fraud, says lawyer seeking EU crypto superfund

“It is an intentional deception in aid of a billion-dollar securities offering.”

Institutional FX

DGCX brokers authorized to provide derivatives trading and clearing services

The DFM is looking to provide multiple asset classes such as; equities, ETFs, equities’ futures, crude oil futures, etc. to meet the growing demand from its diversified base of local and international investors.

Digital Assets

EQONEX leaves “crowded crypto exchange space” amid crypto winter

“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators. We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term.”

Digital Assets

FTX and Paradigm partner for spreads trading: lower risk, lower fees

“This structured spread trading product is the first that will enable crypto investors to utilize cash and carry trades through FTX and Paradigm.”

Industry News

SEC uncovers online retail brokerage hacking scheme

Fraudsters were able to sell their holdings at artificially high prices and reap more than $1 million in illicit proceeds, the SEC alleged. 

Executive Moves

Cornerstone FS taps James Hickman as CEO

“I see great potential in the business from its proprietary technology to its regulatory permissions. It is already delivering an exceptional service to its SME customers and the scalable platform is ideally positioned to add further product capability.”

Retail FX

FCA warns of Lite Forex Pro as crackdown on clone scams continues

The UK Financial Conduct Authority has put out a press release that warns about a new ‘clone firm’ investment scam impersonating LiteForex‎, which rebranded last year as LiteFinance.

Digital Assets

Novogratz’s Galaxy Digital backs out of $1.2 billion deal to buy BitGo

Crypto merchant bank Galaxy Digital would not move forward with its bid to buy digital-asset custodian BitGo.

Executive Moves

OctaFX elevates Nikolas Charalampous to executive director role

OctaFX has promoted its head of dealing, Nikolas Charalampous, to the role of executive director, which saw the expansion of his day-to-day responsibilities and oversight.

<