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- 1 Slovakia’s parliament has approved a change to its constitution, formalizing the right to use cash as a payment form.
- 2 The amendment aims to protect Slovakia’s financial sovereignty and protect store owners’ rights to reject cash payments.
- 3 The introduction of a central bank digital currency (CBDC) or digital euro is a topic of debate.
Slovakia’s parliament has approved a change to its constitution, the amendment is a preventative measure against the digital euro. It is supported by the Sme Rodina party. The introduction of a central bank digital currency (CBDC) or digital euro is a topic of debate, with some experts arguing it poses a threat to individual privacy and competitiveness.
Digital Euro Forced Slovakia to Make Changes In Constitution
Following a decision in parliament on June 15 to change the country’s constitution, Slovakia will formalize the right to use cash as a form of payment. The new legislation was purportedly created as a preventative measure against the projected digital euro. It was backed by the Sme Rodina party, popularly known as the “We Are Family” party.
According to a report from the European news agency Euractiv, Milo Svrek, a co-author of the legislation, told parliamentarians during a discussion that the modification was required to safeguard Slovakia’s financial sovereignty:
“It is very important that there is a provision in the Constitution based on which we can defend ourselves in the future against any orders from the outside, saying there can only be the Digital Euro and no other payment options.”
Euractiv claims Slovakia will change its constitution to protect store owners’ rights to reject cash payments for products and services in addition to legislation codifying the right to use cash. This, according to reports, is intended to create an exception to current cash-acceptance restrictions for stores selling card-only vending machines as well as to safeguard store owners from robberies and exposure to germs.
The introduction of a central bank digital currency (CBDC) or digital euro is something that the European Union has been researching for some time. Recent research conducted by analysts for the parliament referred to the problem as a “solution looking for a problem” but encouraged the EU to be ready to explore the idea further in the future.
The idea that a digital euro would be totally centralized and allow one government agency to manage transactions with it is one of the main issues of contention in the prospective development and implementation of such a currency. Some experts think that this poses an inherent threat to individual privacy.
The issue of competitiveness is another. Although CBDCs have the potential to help people who may have little or no access to traditional digital banking tools, they could pose a threat to businesses and private sector banks that make money by providing credit solutions for the underbanked.
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