- The ECB wants to register a trademark for the digital euro.
- The European regulators try to stay on top of the technological developments.
The European Central Bank applied to register the term 'digital euro,' Bloomberg reports. According to the information on the European Union Intellectual Property Office website, the application was submitted on September 22. The ECB representative confirmed the filing.
ECB dives deeper into digitalization
The European Commission recently published a comprehensive 168-pages draft proposal on how the digital assets can be integrated into the European legal framework. The document covers various aspects of the new financial tool and touches upon the benefits of the central bank-issued digital currencies (CDBC) over the fiat money.
The ECB President Christine Lagarde has also been vocal the topic, signaling that the European authorities are ready to embrace cryptocurrencies, provided that they are adequately regulated and play by the rules. The public consultations about the creation of the digital euro may be launched soon.
"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," Christine Lagarde said in the interview last month.
"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."
The central bank of France selected six banks for a pilot CBDC project. The participants will test CBDC suitability in clearing and settling financial asset transactions.
Along with the digital currency, Europe plans to develop the legal infrastructure for cryptocurrency-based companies. Thus, digital asset issuers will have to receive crypto passports and obtain permission to provide services on Europe's territory.
The global trend is gaining traction.
Central banks worldwide move to a more constructive approach towards digital currencies, Taking them as the objective reality that is here to stay. While some countries choose to impose bans and limitations, the vast majority of global regulators are open to the new technology and ready to use it for their benefit.
Brazil's central bank may be ready to launch its digital currency by the end of 2022, while China is close to rolling out the digital version of yuan.