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European Commission to bring digital euro proposal in early 2023

Updated: Jul 25, 2024
Published: Feb 11, 2022
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As per a recent announcement from a European Commission representative, the governing body is planning to propose a bill for digital Euro as early as 2023.

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European Commission to bring digital euro law proposal

The ECB is currently conducting internal tests on the digital Euro and plans to start development on a prototype by the end of 2023. The governors of the Eurozone will then decide if minting a digital euro is worthwhile. If they succeed, the virtual currency might be presented by 2025.

The EU's executive arm is expected to release a public consultation in March 2022. The consultation will not repeat the ECB's call for comments from 2020, which revealed that respondents' top worry was payment privacy. Instead, the primary focus of the Commission would be on implementations of digital Euro, such as handling payments.

Mairead McGuinness, the EU finance chief, outlined the Commission's plans on legislation proposal at a fintech conference on Wednesday morning.

The Irishwoman stated, "Our goal is to table legislation in early 2023." She added that the governing body is also planning to start targeted legislative consultation in a few weeks. If the proposed bill gets approval, the final deployment is expected to be around 2025.

Approval looks easy

Following that, an impact assessment will be conducted to assess what measures are required to avoid the initiative disrupting the financial system.

For the legislative procedure in the EU, that schedule is ideal. Notably, the approval of the EU capitals and Parliament is necessary before it rolls out as a law. While ECB's governing council is the one to take the final decision, policymakers within the Commission already seem convinced.

Central banks around the world are developing CBDC to protect themselves from the rising popularity of cryptocurrencies, which is expected to impact the position of traditional currency and economy if not being regulated.

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