The European Central Bank (ECB) filed an application last week to trademark the name ‘digital euro’ as the CBDC craze gains momentum. A report by Bloomberg revealed that the ECB applied for the ‘digital euro’ trademark through its German-based legal representatives, Bock Legal. This development comes barely a week since ECB president Christine Lagarde confirmed that the regulatory body is exploring the potential benefits and downside risk of issuing a ‘digital euro.’
Speaking at the European Parliament, Lagarde highlighted that the EU is yet to make a decision on whether it will issue a digital euro. However, she was also keen to note that the bank is actively exploring the CBDC space as per its mandate in monetary oversight,
“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.”
While a practical digital euro phase may take some time, the move by ECB to trademark this name further shows the underlying potential of CBDC disruption. A newly released report by Deutsche bank estimates that around 80% of the world’s central banks have already embarked into some CBDC activity, even if its minimal research. In Europe for instance, Italy and France have already committed to participating in a digital euro-pilot.
China on the other hand is setting the pace for a tokenomics dominance, having begun the digital yuan pilot back in April. This initiative had been ‘under the hood’ for close to five years but was only piloted post-lockdown. People’s Bank of China (PBoC) is in charge of the digital yuan ‘e-RMB’ and intends to gradually replace fiat currency in circulation as part of scaling its monetary effectiveness in the age of cryptocurrencies.
Other jurisdictions that are likely to be at par or slightly behind China include the Bahamas and Thailand. The former is set to launch its CBDC ‘Sand Dollar’ this month while Thailand has partnered with Hong Kong to build a cross-border CBDC. This initiative is currently in the second phase where ConsenSys is set to lead product development, working alongside PWC and Forms HK.