European Central Bank (ECB) Applies for Digital Euro Trademark, Intensifies Work on CBDC

The European Central Bank (ECB) has initiated a big step forwards for its central bank digital currency (CBDC). As per the Bloomberg report on Thursday, October 1, the ECB lawyers applied for the trademark of the term “Digital Euro”.

The trademark application was filed by the ECB on September 22, with the European Union Intellectual Property Office. However, it is still awaiting approval.

Addressing members of the European Parliament last week, ECB President Christine Lagarde said that the public airing of CBDc can happen anytime. Speaking to the EU lawmakers, Lagarde said: “The Eurosystem has so far not made a decision on whether to introduce a digital euro. But, like many other central banks around the world, we are exploring the benefits, risks and operational challenges of doing so. We have a duty to play an active role in balancing the risks and benefits of innovation in payments, so that money continues to serve Europeans well.”

Earlier today, the ECB released an assessment report presenting a comprehensive analysis on launching a Digital Euro. The CBDC shall be prepared by a Eurosystem High-Level Task Force on central bank digital currency (CBDC).

The Eurosystem Taskforce consist of experts from ECB and the 19 central banks who together have worked out possible scenarios for the issuance of Digital Euro.

The ECB said that the Digital Euro will be there to complement cash and not replace it. It also added that the digital form of the central bank money will help users to make payments in a more fast, easy, and secure way.

Lagarde said: “The euro belongs to Europeans and our mission is to be its guardian. Europeans are increasingly turning to digital in the ways they spend, save and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.”

The Digital Euro CBDC will help the region to have a “European risk-free digital means of payment”. It will also significantly help in pushing down the cash payments in the region. The ECB also noted that the Digital Euro will counter other private means of payments that can undermine the financial stability and sovereignty of the region.

The top EU countries have been recently attacking stablecoin operators and demanded stricter rules for the private players like Facebook’s Libra. It seems like ECB’s actions have been in a similar direction.

Fabio Panetta, member of the ECB’s Executive Board and Chair of the task force said: “Technology and innovation are changing the way we consume, work and relate to each other. A digital euro would support Europe’s drive towards continued innovation. It would also contribute to its financial sovereignty and strengthen the international role of the euro.”

Over the last month, we have seen multiple developments in Europe relating to cryptocurrencies. Recently, the European Union launched its digital finance strategy for cryptocurrencies and blockchain.

For the Digital Euro, the Eurosystem will engage with academia, citizens, public authorities and the financial sector to get their opinions and expectations. It will launch a public consultation on October 12.