2023-06-28 21:31:44
June 28, 2023
A proposed bill establishes a framework to facilitate the eventual introduction of a digital euro that is widely usable and available across the eurozone. The ECB also welcomes the Commission’s proposal to protect the legal tender status of euro cash. The Governing Council will decide in the autumn whether to move on to the next phase of the digital euro project.
The European Commission today published its legislative proposal on a digital euro. As banknotes and coins currently are, a digital euro would be a universal means of payment throughout the euro area. The proposed legal tender status for the digital euro would ensure that it is widely accepted as a means of payment. The provision that people can get digital euros from their bank on demand would make it easily accessible and ensure no one is left behind. The proposal also provides that people can use basic digital euro services free of charge. At the same time, the proposal provides private intermediaries with appropriate economic incentives to distribute the digital euro as they do other digital means of payment, while avoiding excessive fees for merchants.
Additionally, the proposed legislation supports a high degree of privacy and data protection for users, while minimizing the risks of money laundering and terrorist financing. It enables offline payments in digital euro, to ensure cash-like levels of privacy.
“The euro is the most tangible symbol of European integration,” said ECB President Christine Lagarde. “He is very popular and trusted by the citizens. We look forward to continuing to work with the other EU institutions towards a digital euro to ensure our currency is fit for the digital age. »
The investigation phase of the digital euro project will end in October 2023. The Governing Council of the ECB will then decide whether to move on to the next phase of the project. In the next phase, the ECB would further develop and test technical solutions and business arrangements. A possible decision by the Governing Council to issue a digital euro would only be taken after the adoption of the legislative act.
“The legislative proposal is essential to ensure that the digital euro brings value to people, bringing the appreciated features of cash into the digital realm,” said Fabio Panetta, Member of the ECB’s Executive Board, who chairs the High Level Working Group on the Digital Euro. “The ECB also welcomes the Commission’s proposal on the legal tender status of euro cash, to ensure that banknotes remain easily accessible to citizens and businesses and widely accepted across the euro area. . »
The ECB welcomes the Commission’s proposal to ensure that cash continues to play an essential role in the payment system. It is crucial that cash remains widely accepted in physical transactions in accordance with its legal tender status. People and businesses need to be able to withdraw and deposit their money efficiently. The legislative proposal ensures that acceptance and access to euro banknotes and coins is legally guaranteed, so that anyone wishing to pay in cash can do so.
The ECB stands ready to provide technical input to support the work of EU co-legislators. The European Commission has recommended that the European Parliament and the Council of the EU consult the ECB on the proposed legislative changes. Following the consultation requests, the ECB would give its opinion in due course.
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