Stellar
$0.63918 3.38%
XLM · 1w

Could the EU use Stellar Lumens (XLM) to issue its CBDC?

On a Reddit post, Stellar community has discussed the most recent developments on the possible issuance of a central bank digital currency (CBDC) by the European Union. According to statements by the president of the European Central Bank, Christine Lagarde, a decision on the project will be made by mid-year.

Lagarde has had an unfavorable position on cryptocurrencies, CBDCs and digital assets. The president of the banking institution has been more in favor of stablecoins. However, in an interview with Bloomberg, Lagarde said that the decision on whether to approve the Digital Euro will be made by the ECB’s Governing Council.

Outlining the roadmap for the Digital Euro, ECB president said that they will soon publish an analysis of the public consultation process that was opened for the project. The institution will then deliver these results to the European Parliament and receive the green light to pilot the CBDC.

Lagarde estimates that the subsequent assessments will last between 6 months to 1 year. In total, the deployment of the Digital Euro may take 4 years. The ECB President stated:

Because it’s a technical endeavor as well as a fundamental change because we need to make sure that we do it right. We owe it to Europeans; they need to feel safe and secure. They need to know that they are holding a central bank-backed […] equivalent of a digital banknote with the same level of security. […] We need to make sure that we are not going to break any system but enhance the system. Stellar’s features would favor Digital Euro

Lagarde stressed that the “intermediaries” that depend on the current system will be able to continue to operate with the current institutions, credit lines and cash which ” will coexist” with the CBDC. The backbone of the project is to create an improved payment system “safe, solid and secure for the Europeans”.

In the Stellar community many users speculated about the possibility of the CBDC be deploy on to...

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