Launch of digital euro consultations by the European Commission in March, proposal of a bill early next year.
Next month, the EU’s executive arm will begin public consultations on the digital euro initiative. In addition, the EC will draught new laws to build the legal foundation for a digital version of the European Union fiat. In 2023, a proposal is expected.
The EU’s Finance Commissioner Unveils a Legislative Plan for a Digital Euro
According to Politico, the European Commission (EC) is intending to introduce a measure that will create the legal groundwork for a digital euro currency. The legislation will aid the European Central Bank (ECB) in completing the technical aspects of the project, which began its inquiry phase in October 2021.
The executive body in Brussels intends to introduce the draught law early next year, but before it wants to hold a public consultation. When the ECB discovered that Europeans were deeply concerned about their financial privacy in 2020, it took action. The EC plans to concentrate on practical issues such as how the coin would help with everyday transactions.
Following the publication of the Politico report, EU Commissioner for Financial Services Mairead McGuinness unveiled the legislative plan at a fintech conference:
Our goal is to introduce legislation in the first half of 2023. In the next weeks, there will be a targeted legislative consultation.
Before becoming legislation, the EC will have to coordinate the bill with the governments and legislatures of the member states. The ECB is now conducting tests with the digital euro. By the end of 2023, the monetary authority intends to have a prototype for the CBDC.
To complete the project, an impact assessment will be conducted to determine whether the digital euro has the potential to undermine the financial system. The governors of the Eurozone will assess whether it is worthwhile to mint a virtual currency, and the digital euro might be produced by 2025.
While the ECB’s Governing Council will make the final decision, prominent EU nations like France and Germany have already urged the Eurosystem’s central bank to increase its efforts in this direction. Policymakers in Brussels and European capitals are concerned that the eurozone would fall behind China, the United States, and Russia in establishing digital currencies.