European Commission publishes legislative proposal for a digital euro

The European Commission has proposed legislation to establish a framework for the introduction of a digital euro that would be widely usable and available throughout the euro area.

3D illustration of glowing optical fibres forming European Union euro currency symbol

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.