Fabio Panetta, Member of the Executive Board of the ECB, addressed the Committee on Economic and Monetary Affairs of the European Parliament to provide an update on the digital euro project. Panetta expressed gratitude for the support and contributions from the Committee throughout the project. He highlighted the progress made since the project’s launch, including the publication of reports and studies that have been made public for transparency. Panetta discussed the European Commission’s legislative proposals on the digital euro and the legal tender status of cash, welcoming them as a way to preserve monetary sovereignty and guarantee people’s freedom to choose their preferred means of payment. He emphasized the importance of close cooperation between European institutions to determine the optimal design of the digital euro. Panetta also outlined key aspects of the legislative proposal, including legal tender status, privacy, pricing objectives, and the ECB’s ability to maintain equilibrium between private and central bank money. He addressed concerns about potential dominance of private actors in the digital payments market and highlighted the advantages of a digital euro issued by public authorities. Panetta mentioned that the ECB is nearing the end of the investigation phase and will soon report the findings to the Governing Council. He emphasized that a decision to issue a digital euro would only be taken after the legislation is adopted. Panetta expressed gratitude to the European Parliament for their ongoing dialogue and support and affirmed the ECB’s commitment to continuing hearings and engaging in the democratic debate on the digital euro. He concluded by highlighting the ambition of the digital euro project and its potential to make Europe fit for the digital age, strengthen autonomy and resilience, and lead the international debate on central bank digital currency.
HomeCBDCDigital Euro UpdatesCrafting the digital future of Europe: navigating towards a digital euro