Central banks across the world are moving towards digital currency and some have already launched theirs. According to a recent update, the European Central Bank, ECB is planning to <a href="https://www.finextra.com/newsarticle/35868/dutch-national-bank-seeks-to-lead-way-in-digital-euro-development" target="_blank" rel="nofollow noopener">launch </a>its central-based digital currency (CBDC). The bank has also started investigations for creating digital Euro. ECB has also indicated that it might be following a retail model in order to develop the digital currency.
<h2>ECB would need a collaborative approach for CBDC</h2>
As Euro is the official currency of total 19 EU countries, it becomes necessary for ECB to collaborate with all of them in order to create a digital Euro. All the central banks of these member states will have to jointly agree and collaborate with ECB for the successful development of CBDC.

It has been seen that different central banks that come under the EU have started showing their interest and support towards this approach by European central bank. Back in March, the Bank of France published a document in which it mentioned the launch of its CBDC. Not only this, but the Dutch National Bank has also come forward for the development of the same. The bank has published a paper in which it has stated that it will be playing a major role in the development of digital Euro.
<h2>Urgent need of central-based digital currency</h2>
The Dutch National Bank has also told about the reasons because of which there is an urgent need for CBDC. Over time it has been seen that there has been a huge decline in cash usage and the coronavirus pandemic has contributed more towards it. Not only this, but private firms are also trying to develop their own digital currency which might be a threat to the central financial system. All of these factors including a few others are leading ECB to develop Digital Euro in order to deal with the current financial system.

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ECB Planning to Build Digital Euro on Retail Model

The ECB is planning to launch its central-based digital currency (CBDC), a digital Euro and has started investigation for the same.

Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.

ECB Planning to Build Digital Euro on Retail Model

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