Date: 16 February, 2024
Key Points:
- European Committee (LIBE) decisively supports the latest digital euro report, proposing amendments for legal tender status.
- The vote shows a significant shift, with 48 in favor, six opposing, and seven abstaining.
- Proposed amendments address bank concerns and include provisions for permissionless blockchains.
- Liberal, left-leaning, and center-right PPE parties endorse the amendments, emphasizing broader parliamentary support.
- The vote reflects a more favorable stance toward the digital euro than previous debates.
- Despite the draft legislation allowing payment providers to use their wallets, MEP Cristian TerheÈ™ expresses concerns about state control over digital transactions.
- European Central Bank to set digital euro standards, signaling progress amid ongoing legislative debates.
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The parliamentary European Committee on Civil Liberties and Justice (LIBE) voted decisively in favor of the latest digital euro report, proposing amendments that could establish the digital currency as legal tender. The vote, with 48 in favor, six opposing, and seven abstaining, marks a significant shift in support for the central bank digital currency (CBDC).
The proposed amendments address concerns raised by banks and include provisions supporting permissionless blockchains. Notably, liberal and left-leaning parties and the center-right PPE party, the largest group of MEPs, voted in favor, indicating potential broader parliamentary support for a digital euro.
In contrast to last year’s debates that revealed reservations, the latest vote suggests a more favorable stance toward digital currency. MEP Cristian TerheÈ™ of the ECR group expressed concerns about state control over digital transactions, stating, “The implementation of the digital currency will lead to the total control of the state over the population.”
Despite objections, the draft legislation allows payment providers to use their wallets, although the European Central Bank will set digital euro standards. The outcome of the LIBE Committee vote signals a step forward for the digital euro, but debates over citizens’ rights and state control are likely to persist in the ongoing legislative process.
References:
https://www.ledgerinsights.com/digial-euro-parliament-committee-votes-in-favor/