An informal document shared among EU officials shows digital finance, and thereby crypto, topping a list of priorities to be discussed.
European Central Bank Shows It’s Serious About Enabling Digital Euro Offline Use
The central bank plans to allocate the lion’s share of its $1.3 billion contract budget for providers to work on enabling offline payments for a digital euro.
Fiery Public Hearing on Digital Euro Sees Experts Diverge on Key Issues
Expert witnesses answered lawmaker questions on holding limits, impact on banking systems and privacy for an EU central bank digital currency.
Digital Euro Can End Bank Crises, Is Better Than Deposits, Ex-Bank of Spain Chief Says
A central bank digital currency (CBDC) could also be used to deregulate banking activities and help the banking sector grow, Miguel Fernández Ordóñez said during a European Parliament hearing on a digital euro.
Digital Euro Isn’t Pressing, but Work Should Continue: Spanish Central Bank Governor
Europe’s “highly efficient” payment systems leave space to address social and financial concerns of a central bank digital currency, Pablo Hernández de Cos said.
Digital Euro Project Moves to ‘Preparation’ Phase
The move is not a decision to issue a central bank digital currency, the European Central Bank said Wednesday.
EU Privacy Watchdog Takes Aim at ‘Excessive Centralization’ of Digital Euro
The central bank digital currency has met significant opposition from lawmakers worried over excessive state snooping
Italy’s Cipollone Defends Digital Euro as He Seeks ECB Role
Remarks at a parliamentary hearing suggest no digital currency swerve when Fabio Panetta steps down in November
EU Plans for Wholesale CBDC Out Within Weeks, French Central Banker Says
A central bank digital currency usable by financial markets is moving faster than a more controversial plan targeting regular citizens
Digital Euro at Least 2 Years Away, ECB’s Lagarde Says
The central banker said she wanted to address “conspiracy theories” about government snooping
Digital Euro Conspiracy Theories and Privacy Concerns Put EU Central Bankers in the Hot Seat
Officials promise privacy controls for the possible new CBDC, but are less clear how to respond to wilder reactions.
Controversial Digital Euro Plan to Be Led by Architect of Landmark MiCA Crypto Law
The center-right lawmaker previously negotiated the landmark MiCA crypto law for the European Parliament
EU Publishes Digital Euro Bill Featuring Privacy Controls, Offline Guarantee
Officials want a digital payment system available to “everyone, everywhere, for free.”
Digital Euro: The Bill Is Ready but Politicians Aren’t Convinced
A plan to legislate for the central bank digital currency may still be on track for publication, but there is still significant political skepticism about the purpose.
EU Legislation for Digital Euro Is Put on Hold: Source
A bill covering privacy and distribution of the central bank digital currency, originally scheduled for June 28, will be delayed
EU’s Leaked Digital Euro Bill Outlaws Interest, Large Holdings, Programmability
The central bank digital currency must be usable offline from day 1 to safeguard privacy, the draft law says.
ECB Finalizes Digital Euro Prototypes as Development Decision Looms
The central bank has examined the use of distributed ledger technology and smart contracts for its potential new digital currency.
European Commission To Present Regulatory Framework For Digital Euro In June
Fabio Panetta, a member of the Executive Committee of the European Central Bank (ECB), recently announced that the European Commission would be presenting a legislative proposal for the digital euro in June. He further stated that the next steps would be decided in October.
Digital Euro Regulatory Framework In Progress
In an interview with the ECB’s official site, Panetta confirmed that the eurozone bank is in regular contact with the European Commission to establish a regulatory framework for the digital euro. The digital euro is set to become the official central bank digital currency (CBDC) for the 27 countries in the European Union.
Panetta stated, “We are studying the design of the digital euro, its distribution, and its impact on the financial sector.” He also mentioned that the proposal expected to be presented in June would receive a response from the Governing Council of the ECB in October.
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The Governing Council will then decide whether to initiate a preparation phase to develop and test the digital euro. According to Panetta, the European CBDC testing phase could last two to three years.
If everything progresses smoothly and both the Governing Council of the ECB and the legislators of the European Parliament approve the proposal, the digital euro could be launched in approximately three to four years, estimated Panetta.
Will The Digital Euro Receive Significant Adoption?
During the interview, Panetta was asked about the benefits and potential risks of using the digital euro. In response, he emphasized the need to provide citizens with a risk-free digital means of payment that can be used freely throughout the euro area.
Panetta highlighted that such a solution currently does not exist, pointing out that the card payment market is dominated by non-European companies, specifically referring to Visa and Mastercard. He stated that this situation would be unthinkable in the United States and expressed concern about companies selling users’ personal data.
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Panetta also emphasized the importance of central bank money remaining at the financial system’s core. The increasing adoption of cryptocurrencies like Bitcoin (BTC) raises concerns for entities like the ECB.
Addressing concerns about privacy, Panetta clarified that the ECB would not have access to personal data. Financial intermediaries will handle the distribution of the digital euro, and a balance must be found between ensuring confidentiality and combating money laundering and terrorist financing. Panetta noted that the responsibility of finding this balance lies with the legislators.
CBDCs On The Rise
Central Bank Digital Currencies (CBDCs) are indeed on the rise as countries worldwide explore the potential of digital currencies issued and regulated by central banks. Countries like the Bahamas and Nigeria have already launched their digital currencies, while China and Japan are in advanced pilot stages.
-Featured image from iStock.com, chart from Tradingview.com
ECB Probes Decentralized Settlement for Wholesale Financial Markets
Euro regulators are looking again at their centralized settlement systems in seeking to keep pace with digital innovation as they explore central bank digital currencies.
Don’t Cap Digital Euro Holdings, European Parliament Study Says
The paper turns on its head conventional wisdom that limits are needed to avoid supplanting the banking system