- 17 January 2023
- Posted by: Cryptovalues
- Category: Central Banks, Cryptovalues News
The Eurogroup, the body composed of European finance ministers, said the introduction of the digital euro requires policy decisions that should be discussed and adopted at the political level.
Thus, they take stock of the developments of the digital euro, the European finance ministers said.
In a recent statement, the Eurogroup, said that the digital euro could not be a programmable currency. In other words, there would be no restrictions on the types of goods and services to be purchased or the time the digital euro could be used.
The main motivation for this fascinating European digital currency project-beginning in July 2021 and with a study phase of at least 24 months-is to maintain the central bank’s neuralgic role in the economy, even if “threatened by the digital revolution,” according to French Central Bank President Galhau.
The recommendations of the Bank for International Settlements, which has long called on states to have a digital state currency, have been seized upon in Europe especially by France, which is currently the most advanced European country in digital currency design. In addition to the transalpine country, at the forefront about CBDC are countries such as Italy, Germany, the Netherlands and Spain.
According to the German newspaper Handelsblatt,
“The digital euro could play a decisive role in strengthening the strategic autonomy of the European Union and promoting innovation in the financial sector,” and “behind the push by the five Eurozone countries is the fear that without a European offering, other digital currencies could gain prominence in Europe.”
The European Commission is tasked with proposing a digital euro law by the end of the year, and EU leaders are expected to decide whether to use a digital euro after October 2023, and in its discussions, the Eurogroup noted that the digital euro should complement rather than replace cash, be legal tender and ensure a high level of privacy.
It should then prevent money laundering, illicit financing and tax evasion while maintaining user confidence.
Critically, Eurozone finance ministers said the design of the digital euro should not compromise the ability of European central banks to fulfill their price stability mandate.
The group also added that the CDBC should be widely accessible to the public, ensure access to central bank money for eurozone users, and its design should consider environmental implications.