The European Commission opens a new consultation on the digital euro

The European Commission opens a new consultation on the digital euro

The European Commission asks financial services specialists to give their opinion on the possible implementation of a digital euro.

In a note published on Tuesday, the European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union said it would prepare an assessment of the central bank’s digital currency based on the expected impact on service providers. financial services, retail users and chambers of commerce. The Commission will consult industry specialists on issues related to the digital euro, such as international payments, privacy, the impact on the financial sector and financial stability, use cases alongside cash payments, and anti-counterfeiting rules. money laundering and terrorist financing.

“In order for a digital euro to be used as a single currency, together with euro banknotes and coins, a Regulation of the co-legislator, on a proposal from the Commission, would be necessary,” says the consultation documentto. “Furthermore, additional legislative adjustments to the current EU legislative framework might be required to accommodate the digital euro and possibly digital currencies issued by the central banks of non-Eurozone member states.”

Consultations on the digital euro will complement those carried out by the European Central Bank, which recently published the results of commissioned focus groups in September 2021. Feedback from the general public and from merchants suggests that the potential deployment of a digital euro could benefit from both online and physical point of sale use cases. The European Commission will accept responses until June 14.

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Mairead McGuinness, finance chief of the European Commission, said in February that legislation on the 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 appears to be growing globally. A consultation carried out by the ECB between October 2020 and January 2021 concluded that a digital euro could help reduce interest rates, speed up transaction processes and reduce the use of cash.

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