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- 1 E.U. plans for Digital Euro delayed. It was initially scheduled on June 28, 2023.
- 2 Multi-level consultation process started ahead of MiCA execution.
The long-awaited bill covering distribution and privacy of the Digital Euro was originally scheduled for June 28, but it has now been delayed. The European Union’s executive body, the European Commission, planned to publish a bill regarding E.U. ‘s Central Bank Digital Currency (CBDC), the Digital Euro.
E.U.’s Digital Euro Inception Will Be Delayed
The move to halt the procedure came after the leak of the bill draft, covering privacy and other technical issues for the proposed CBDC. Additionally, a statement given last week by the finance minister Christine Lagarde questioned the motivations behind the plan. The decision of the European Central Bank regarding issuance of currency in digital form also changed multiple times. The final choice was expected in May 2023.
As per the agenda, the bill was scheduled to be discussed and published during a June 28 meeting of the European Commission’s decision making body. However, no specific reason for the delay was disclosed by the commission, nor has the due date for publication been revealed.
The discussion regarding future plans on the subject was discussed in a June 15 meeting with the finance ministers. During the meeting, they emphasized the significance of developing a clear and compelling narrative surrounding the development of the digital euro.
Furthermore, its possible impact on the economy and citizens shall be discussed. Irish Finance Minister Paschal Donohoe stated that other ministers want to support the initiative, but are skeptical about its narrative.
However, the European Central Bank is yet to agree with the issuance of CBDC, and the regulators wish for the laws to be specified and implemented in the meantime. E.U. ‘s financial-services Commissioner, Mairead McGuinness, spoke with the lawmakers on the Economic and Monetary Affairs Committee, arguing that the regulations would be required in the future.
E.U.’s Pioneering Crypto Regulation – MiCA
The much-awaited comprehensive regulatory framework for the crypto industry is slowly taking final shape in the European Union. With Market in Crypto Assets (MiCA), E.U. could become the first major jurisdiction on the planet to have such regulations in place. However, it is still 18 months away from implementation.
On June 9, 2023, the regulations were published in the Official Journal of the European Union (OJEU), starting the countdown for its implementation. These regulations will come into force after a period of 20 days from the publication, i.e. by June 29. However, certain parts of the regulations will come into effect only by the same day in 2024, while the complete set of regulations will be active only by December 30, 2024.
Experts argued that a seamless implementation of MiCA across member nations would require intense lobbying efforts. The Chainalysis policy head for the European Union pointed out that the crypto companies need to be proactive in adapting the regulatory framework.
The execution of MiCA will be an act to witness. The firms wanting to operate in the Bloc must first apply for authorization from the member country of their choice. Authorities will have a 25-day period to notify the firm of any missing documents or procedures. The final acceptance or rejection status will be informed to the concerned company within 60 days.
Prior to its execution, a multi-level consultation process will be handled by the European Securities and Markets Authority (ESMA), starting from July 2023. The process is divided into three consultation packages, each with unique contents and deadlines. All of this is to ensure a seamless implementation of MiCA.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
