The leading technology company, IBM has published an application report for implementing the digital version of Euro.
Amid the ever growing digital payment sector, it’s becoming easier to transfer currencies across the globe. Being the currency for over 20 countries, Euro holds a significant importance in the worldwide economy.
In the report, IBM suggests to use existing rails in order to fasten the adoption and avoid unnecessary actions regarding the product implementation. There is already a ground set by different players which can be considered to build a base for digital currency.
As the growth of newer products highly depends on its ecosystem channel, IBM proposes to utilize a common development suite (PSD2) which is widely implemented across the European FinTech sector. It gives a broader room to make digital euro and its infrastructure accessible across different financial applications in the ecosystem.
The report states the significance of digital euro’s privacy from its technical, operational, and legal aspect. While offline payments preserve privacy by legislative proposal, it can also be allowed for online payments.
“By allowing strong privacy for a significantly larger volume of cash-like payment transactions a higher adoption rate is very likely, and it would allow for immediate detection of a potential double spend and counterfeiting,” it said.
With the use of Distributed Ledger Technology (DLT), digital euro could unlock numerous token-alike characteristics such as seamless and high speed transfers, resilience, security as well as transparency. IBM also recognizes the novel zero knowledge proof which could enhance data privacy for the digital version of euro.
Further, the company recommends the minimum viable product (MVP) approach to roll out the proposed digital euro design with plans to launch the ideal implementation in phases.
Also read: Bloomberg Experts Predict 75% Probability of Bitcoin ETF Approval in 2023
