European Commission publishes legislative proposal for a digital euro

The proposed legislation aims to ensure that a digital euro would have legal tender status, be easily accessible to all individuals, offer basic services for free, protect privacy and data, and prevent money laundering and terrorist financing risks.

The European Central Bank (ECB) welcomes the proposal and supports the protection of the legal tender status of euro cash. “The legislative proposal is key to ensuring that the digital euro brings value to the people, taking the appreciated features of cash into the digital sphere”, said Executive Board member Fabio Panetta

Earlier in 2022, the EU launched the consultations process to help in the act preparation. The legislative act must be adopted before a decision to issue a digital euro can be made.

The European Union launching targeted consultations on digital euro

The European Commission announced another round of consultation on the launch of digital euro, the EU’s central bank digital currency (CBDC). Consultations would aim on comments and considerations of payment industry specialists, e-money institutions and consumer associations, among others. The consultation period started on April 4 and will last until 14 June 2022.

The outcomes of the consultations will target evidence on the following issues:

  • Users expectations for a digital euro
  • Role in the EU’s retail payments, and impact on digital economy
  • Availability for retail use while continuing to safeguard the legal tender status of cash
  • Impact on the financial sector, and the financial stability
  • Application of anti-money laundering and counter terrorist financing (AML-CFT) rules
  • The privacy and data protection aspects
  • International payments with a digital euro

Participants can submit their response in an online questionnaire posted on an EU Commission website.