European Commission opens new consultation on digital euro

The European Commission is calling on financial services professionals to consider the possibility of implementing a digital euro.

The Commission will consult with industry experts on issues related to the digital euro including international payments, privacy and the impact on financial stability.

In an announcement on Tuesday, the European Commission’s Board of Directors said it was considering a central bank digital currency. The Commission will consult with industry experts on issues related to the digital euro including:

• International payments,
• Privacy,
• Impact on the financial sector and financial stability,
• Use cases along with cash payments,
• Anti-Money Laundering and Anti-Terrorism Financing Rules.

The consultation document says:

“For the digital euro to become a currency, it will require oversight and regulation by lawmakers. Furthermore, there will be additional adjustments to the existing legislative framework for regulation of the digital euro, and digital currencies issued by the central banks of non-area countries. issued euro.”

The consultations will complement recent surveys conducted by the European Central Bank (EBC) on the technical euro. Feedback from the public and entrepreneurs shows that the implementation of the digital euro is very positive. Figures show that the Euro can derive many benefits from both online and in physical retail stores. The European Commission will accept responses until June 14.

Mairead McGuinness, the European Commission’s chief financial officer, said that legislation on a digital euro will be proposed around 2023.

The European Central Bank is in the process of researching the development of a digital euro, joining the majority of global central banks. Many governments like India, Russia, Nigeria, etc. are paying more and more attention to government-regulated digital currencies. An ECB consultation from October 2020 to January 2021 suggests that a digital euro can help lower interest rates, speed up the transaction process, and reduce the use of cash.