untitled design

European Commission to present digital euro bill in 2023

The European Commission plans to introduce a Central Bank Digital Currency bill early next year, with the launch of the digital euro not until 2025 at the earliest.

The European Central Bank (ECB) is currently experimenting internally with the digital euro and expects to begin work on a prototype platform by the end of 2023. If regulators consider the launch of a digital euro worthwhile, then it could be ready by 2025.

By this time, the regulations governing the use of the digital currency of the central bank in Europe should already be worked out. Mairead McGuinness, Commissioner for Financial Affairs of the European Union, announced this at a fintech conference organized by Afore Consulting.

The ECB will again hold a public consultation on the digital euro next month. Previously, the regulator has already launched similar discussions, during which it turned out that the main problem for survey participants was the confidentiality of payments. The ECB will now focus on the options for using the digital euro and its ability to make everyday payments.

In addition, an assessment will be made of what precautions need to be taken for the introduction of the digital euro in order to prevent destabilization of the European financial system. There are fears among banks that in the event of the next financial crisis, people can convert their deposits into digital euros “at the touch of a button”, and this will lead to a massive “influx” of users into online banking.

The final decision on the launch of the digital euro will be made by the Governing Council of the ECB, but European politicians are calling for the process to be accelerated. Earlier, Bank of France Governor François Villeroy de Galhau expressed interest in implementing a digital euro as central banks explore the possibility of launching their own digital currencies.

According to de Galo, the European Union should take a more active part in this process so that the ECB does not lag behind other central banks. ECB executive board member Fabio Panetta also said that with the transition to a digital euro, the ECB will be better able to protect user privacy than private firms.

Source: Bits

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular