ECB’s Digital Euro Project Faces Scrutiny Following Payment System Failure – BitRss

Discussions surrounding the European Central Bank’s (ECB) digital euro project have resurfaced following the collapse of the TARGET2 payment system at the end of February. This breakdown in the real-time settlement system caused payment transactions to halt for hours, raising significant concerns.

Impact of the Payment System Collapse

The TARGET2 system is a critical infrastructure that manages the ECB’s daily payment and settlement operations. Its temporary suspension raised questions about transaction continuity and the reliability of the financial system. As a result, debates about the feasibility of new initiatives like the digital euro have intensified.

Some Members of the European Parliament consider this failure indicative of the ECB’s lack of preparedness for the transition to a digital euro. There is a growing wave of criticism and concern regarding the issue.

European Parliament’s Perspectives

German MEP Markus Ferber stated that the collapse has undermined the institution’s credibility and suggested there could be uncertainties in the digital euro implementation process.

Mark…