Member of the Executive Board of the European Central Bank, Fabio Panetta, revealed on Wednesday that the ECB's Governing Council would decide in October whether to launch the preparation phase for developing the digital euro.
If the decision is favorable, Panetta told Les Echos that the testing phase would last up to three years, meaning the ECB would issue digital euro in around four years. However, it wouldn't be in charge of distributing it. Instead, the Eurozone's central banking system would continue making banknotes available for as long as there is demand for them. The idea is not for the digital euro to replace cash, he confirmed.
The European Commission will publish its legislative proposal for CBDCs next month. Commenting on the collaboration with international partners, Panetta noted that the ECB is already working closely with the central banks of the United States, the United Kingdom, Switzerland, Canada, Japan, and Sweden.
