Digital Euro’s 2023 Rollout Makes European Commission Solicit Advice from Financial Experts
The European Commission is seeking insight from financial services experts on the possible implementation of a digital euro.
EU will issue digital euro
The European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union announced on Tuesday that it would be preparing an assessment of the central bank’s digital currency based on the expected impact on financial service providers, retail users, and chambers of commerce in a statement. The commission will consult with industry experts on problems such as international payments, privacy, the impact on the financial sector and financial stability, use cases alongside cash payments, and anti-money laundering and refute financing legislation.
“For a digital euro to be used as the single currency, concurrently with euro banknotes and coins, it would require a regulation of the co-legislator, upon a proposal by the commission,” said the consultation document. “Moreover, additional legislative adjustments of the current EU legislative framework to adjust to the digital euro and possibly to digital currencies issued by central banks of non-euro area member states may be needed.”
The digital euro consultations will be in addition to those held by the European Central Bank, which recently announced the results of focus groups commissioned in September 2021. According to public and merchant feedback, the potential implementation of a digital euro might benefit from use cases both online and in physical retail outlets. Responses will be accepted until June 14 by the European Commission.
Mairead McGuinness, the European Commission’s finance chief, said in February that legislation on a digital euro will be proposed sometime in 2023. The European Central Bank has been exploring the development of a digital euro as interest in central bank digital currencies seems to be growing globally. An ECB consultation from October 2020 to January 2021 found that a digital euro might help lower interest rates, speed up transaction processes and decrease the use of cash.
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