European Commission outlines vision for digital euro

The European Commission on Wednesday released a proposal for a digital euro that would ensure free access to CBDCs across the bloc and establish a legal framework so digital euro payments can be made from device to device, both online and offline.

“The digital euro will be available alongside existing national and international private means of payment, such as cards or apps and it will work like a digital wallet where people and businesses can pay with digital euros anytime and anywhere in the euro area,” said the proposal. .

The proposed law aims to guarantee privacy similar to that of physical cash, with online transactions offering the same level of protection as existing digital means of payment, “without anyone being able to see what people are paying when using digital euros offline.”

European commissioner for financial stability Mairead McGuinness said she expected the debate on the digital euro to continue, but added that the proposed new measures could win over skeptics.

Digital euro debate

“Today’s proposal will help frame the debate around what is a digital euro and the advantages of creating one,” McGuinness said. “We are at the beginning of a long democratic process, which will be carried out hand in hand with the European Parliament, the Council, and of course, the European Central Bank, who will decide whether and when to introduce a digital euro.”

The European Central Bank will ultimately decide whether to issue the block’s CBDC. In a statement published Wednesday, it welcomed the European Commission’s proposal and confirmed it would decide in the coming months whether to move to the next phase of its CBDC project.

“The euro is the most visible symbol of European integration,” said ECB President Christine Lagarde. “We look forward to continuing to work with other EU institutions towards a digital euro to ensure our currency is suitable for the digital age.”

ECB’s Fabio Panetta added that the proposal “is key to ensuring that the digital euro delivers value to society, bringing the valued features of cash into the digital realm.”

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