2023-06-28 19:40:00
The European Union published a document on Wednesday with the legal basis for the launch of the digital euro, a project that has generated controversy among politicians, banks and the population itself. The proposal has been suggested since 2020 and, in the meantime, there was a public consultation.
The digital currency must be accessible to residents as well as tourists. This novelty offers an additional payment option, both online and offline, allowing citizens to use their digital wallets, guaranteeing anonymity and the presence of coins and banknotes. But for real, the proposal must be approved by the 27 members of the EU and the European Parliament.
Among the advantages for the currency, the European Central Bank argues that it will complement money and allow filling gaps to be filled by private actors outside the EU.
The commission justifies that the “long-term benefits of the digital euro outweigh its costs” and points out that “inaction can entail potentially huge costs”. In March, central bank governor Christine Lagarde stressed that digital currency is crucial for resilience and “protecting Europe’s payments autonomy”.
economy and market
30 May
Curiosity
12 Jan
On the other hand, critics put the need for the currency in check, with questions about the privacy of payments. German MEP Markus Ferber points out that the ECB and the commission have not yet convinced him of the value of the digital currency. Private banks point to the risk of bank runs, as customers could keep their funds in euro-denominated digital accounts and wallets, leaving bank balance sheets.
On privacy, the central bank denied any intention to control how people spend the digital currency or use it for surveillance purposes, as critics in China claim.
“With the digital euro, data privacy will be the same as with existing private digital payment methods. For offline payments, data privacy will be even greater,” European Commissioner for Financial Services Mairead McGuinness said in Brussels.
1688000829
#Digital #euro #European #Union #publishes #legal #basis #currency #creation