(Finance) – To be successful, a digital euro “must be a common and inclusive European projectsupported by the European public and built on a solid democratic basis“. This can be read in a statement by theEurogroupthe informal body that brings together the finance ministers of the member states, which today took stock of the progress of the digital euro, a central bank digital currency (CBDC) which would be the electronic equivalent of cash
Ministers said they welcome the commitment of the European Central Bank and the European Commission to regularly inform the Eurogroup and member states on the technical preparation of the project, but also underlined that they believe that the introduction of a digital euro , as well as its main features and design choices, “require political decisions that should be discussed and made at the political level“.
“Creating a digital euro would require a adequate legal basisinvolving the European Parliament and the Council of the European Union on the basis of a legislative proposal from the European Commission”, reads a statement.
The Eurogroup also took stock of the ideal characteristics of the digital euro. A digital euro should complement and not replace cash and should ensure access to central bank money for euro area users in times of increased digitization of payments. Also, a digital euro should be secure and resilientensure a high level of privacy, be easy and convenient to use and widely accessible to the public, also in terms of costs for end users.
Among other things, the design of a digital euro should respect other policy objectives such as the prevention of money laundering of money, illicit financing, tax evasion and ensure compliance with sanctions. Also important that the digital euro aims at safeguard financial stability of the euro area
At the same time, ensure a pan-European reach of the digital euro, catalysing innovation in the financial sector and the complementarity with private solutionsshould be a priority.
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