Key Takeaways
- The new solution can potentially help handle unlimited transactions
- Some major European countries would also partner with BOE to actualize the digital euro
- There are claims that the project would take nothing less than two years to develop fully.
The experiment was conducted in alliance with the European Central Bank (ECB) and central banks of five European countries (Latvia, the Netherlands, Germany, Ireland, Estonia, and Greece) to digitize all interactions necessary for civilian life in the "e-Estonia."
In the experiment, digital money payments were made between Estonia, Latvia, Lithuania, and Spain. The system processed more than 300,000 payments per second, and the money was sent within 2 seconds.
Bank of Estonia noted the following: "This technology (blockchain) does not put a fundamental limit on the size of the money supply. The system can handle more than the total supply of euros in circulation."
Central Bank Digital Currencies is the trend globally, and earlier in the month, the ECB announced that it would begin a two-year study to develop the digital euro.
Christine Lagarde, president of the European Central bank, told Bloomberg Television on the 11th, "It has a very close impact on people's lives. I hear that people want to protect their privacy, but at the same time accelerate money laundering and terrorist financing. We also need to make sure that we don't let it happen. We need to have the right balance in every aspect."
China has already begun proof-of-concept tests of the "digital yuan" in several cities and is in the final stages of its introduction. Caribbean countries such as Grenada and Saint Kitts and Nevis, where the Eastern Caribbean Central Bank (ECCB) shares a common monetary policy, have also begun trial issuance of the Eastern Caribbean dollar digital currency.
The US Federal Reserve and the Bank of England (Central Bank of England) also verify the possibility of launching a national digital currency.
Do you think the discovery by the Bank of Estonia would actualize its potential in the cryptocurrency world?
