The Estonian Central Bank is confident in the potential and scalability of the digital euro after an experiment with several other central banks in the Eurozone.
According to the Bank of Estonia, “the new digital euro solution on the blockchain can theoretically process an almost unlimited number of payments simultaneously.”
A joint experiment by the Bank of Estonia, the European Central Bank (ECB) and the Central Banks of Spain, Germany, Italy, Greece, Ireland, Latvia and the Netherlands studied the same technology that forms the basis of e-Estonia, an Estonian initiative to digitize all interactions between citizens. and the state.
In the experiment, participants with digital IDs sent payments in digital money between Estonia, Latvia, Lithuania, and Spain. The system could process more than 300,000 transactions per second, with money reaching recipients in less than two seconds.
“This technology does not impose any significant restrictions on the size of the money supply,” the Bank of Estonia says. “The system is capable of handling all euros in circulation and is not limited to this volume.”
As a reminder, earlier this month, the Governing Council of the European Central Bank launched the digital euro exploration phase. It will last 24 months, and the digital currency itself can be issued in 4 years.
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