Wed. Jun 1st, 2022
Next Year, the European Union will launch a digital wallet for payments.

Next Year, the European Union will launch a digital wallet for payments.

 

The European Union (EU) will create a digital wallet that will allow people of any EU country to make payments and access services provided by each member state, as well as store digital ID information.The wallet, which is expected to be released next year, might be linked to the ECB’s digital euro initiative, a central bank digital currency (CBDC) plan that is still in the works.

Next Year, the European Union will launch a digital wallet for payments.

The European Union intends to release a digital wallet that will allow citizens to make frictionless payments between all member states. According to Reuters, the wallet will be released next year and would combine private and governmental services into a single app.

The wallet would function as a payment and ID vault, allowing users to store digital versions of their physical permits such as passports and driver’s licenses, as well as integrating other state-dependent services.The wallet will be validated using biometric data such as fingerprint verification and retina scans, which will be done utilizing the processing capacity and sensors that mobile devices currently have.

The European Union is believed to have considered the app’s users’ privacy: the bloc would presumably construct the app in such a manner that data from users is compartmentalized, ensuring that this valuable data is not exploited for advertising or other reasons by third parties.

Is There a Digital Euro Connection?

While the European Central Bank has yet to determine whether or not to issue a digital euro and is still studying the implications of central bank digital currencies, this wallet might be beneficial in the deployment of such a currency. The digital euro, when combined with the app, might provide the European Union leverage to curb the emergence of alternative, unregulated digital currencies.

One of the major aims of creating a digital euro, according to the European Central Bank, is to:

…avoid reliance on digital payment instruments issued and controlled outside the eurozone, which might jeopardize financial stability and monetary sovereignty.

If fully implemented, the system would be the world’s largest digital CBDC, with 27 member countries of the European Union falling under its sphere of influence. It would not, however, be the first: the Bahamas and China are also working on their own digital currencies.

 

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