The digital euro is expected to be launched in three to four years, with the availability of bills being based on demand, according to Fabio Panetta, a member of the European Central Bank (ECB) Executive Board, as reported by Les Echos.

To ensure compatibility with other similar currencies, Panetta stated that the ECB has been collaborating closely with the central banks of the United States, Britain, Switzerland, Canada, Japan, and Sweden.

Panetta believes that although interoperability is desirable, different national privacy regulations could complicate the process at this preliminary stage of comparison.

Experts anticipate that the ECB’s plans for the digital euro are primarily focused on retail usage. The digital currency could be transferred using a digital wallet and could be accessed through a standard app or existing online banking apps. The digital euro is not intended to replace cash but rather to provide an additional method of storing currency. It would serve as a secure and user-friendly electronic means of payment available to anyone in the eurozone.

Earlier we reported that the dollar appreciated against the euro and the yen ahead of the release of U.S. data.