The European Commission has proposed legislation that would establish a framework for the potential introduction of a digital euro that can be widely used and accessible throughout the euro area. The proposed digital euro would have the same legal tender status as physical banknotes and coins, ensuring its acceptance as a means of payment. The legislation also includes provisions for easy accessibility, allowing individuals to obtain digital euros through their banks upon request. Basic digital euro services would be available for free, and private intermediaries would be incentivized to distribute the digital currency while preventing excessive fees for merchants. The proposed legislation prioritizes user privacy and data protection while addressing risks related to money laundering and terrorist financing. The ECB President, Christine Lagarde, emphasizes the importance of a digital euro that is suitable for the digital age and looks forward to continued collaboration with other EU institutions. The investigation phase of the digital euro project will conclude in October 2023, and the Governing Council of the ECB will then decide whether to proceed to the next phase. The ECB also welcomes the Commission’s proposal to protect the legal tender status of euro cash, ensuring that physical banknotes and coins remain easily accessible and widely accepted. The ECB is ready to provide technical input to support the legislative process, and the European Parliament and EU Council are encouraged to consult with the ECB on the proposed changes.
HomeCBDCDigital Euro UpdatesEuropean Central Bank Supports European Commission's Legislative Proposals for Digital Euro and...