Home
News
The European Commission asks financial services experts to comment on the expected release of a digital euro.
In a notice released on Tuesday, the European Commission’s Directorate‑General for Financial Services, Financial Stability, and Capital Markets Union stated that it would be drafting an appraisal of the central bank’s digital currency on the basis of the potential impact on retail users, financial service providers and chambers of commerce.
The commission will discuss with industry experts on issues on the digital euro, including privacy, international payments, anti-money laundering, use-cases besides cash payments, the effect on the financial sector and financial stability, and tackling the financing of Terrorism rules.
The consultation document stated that regulation of the co-legislator will be needed for a digital euro to be utilized as the single currency, simultaneously with euro banknotes and coins.
Furthermore, some more legislative adjustments in the existing EU legislative framework for adjusting to the digital euro and likely to digital currencies issued by central banks of non-euro area member states would be required.
The digital euro consultations would supplement the European Central Bank’s consultation that recently has rolled out findings from focus groups that got commissioned in September 2021.
Also Read: Turkey Planning On the Metaverse: But Is It A Good Idea for Turkish Citizens?
As per the feedback from the merchants and general public, the expected release of a digital euro could profit from use-cases both online and physical retail outlets. Responses will be accepted by the European Commission till 14 June.
In February, the finance chief of the European Commission, Mairead McGuinness, informed that the legislation on a digital euro will be suggested around 2023. With the interest in central bank digital currencies is expanding worldwide, the European Central bank is looking for ways to explore the development of a digital euro. According to an ECB consultation between October 2020 and January 2021, a digital euro could help speed up transaction processes, lower interest rates, and mitigate the use of cash.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
