The executive body in Brussels aims to introduce the draft law early next year but before that, it wants to launch a public consultation on the matter. The ECB already did that in 2020 when it found that Europeans were deeply concerned about their financial privacy. The EC intends to focus on practical questions such as how the coin will facilitate everyday payments.
Following Politico’s report, EU Commissioner for financial services Mairead McGuinness announced the legislative plan at a fintech conference: Our goal is to table legislation in early 2023. A targeted legislative consultation in the coming weeks. The European Commission will have to coordinate the bill with the governments and legislatures of the member states before it becomes law. Tests with the digital euro are now ongoing at the ECB. The monetary authority hopes to begin working on a prototype for theTo finalize the project, an impact assessment will also be carried out as well, in order to establish whether the digital euro can destabilize the financial system.
While the ECB’s Governing Council will make the final decision, leading EU members such as France and Germany have already called on the Eurosystem’s central bank to step up efforts in that direction. Policymakers in Brussels and European capitals fear the eurozone may lag behind China, the U.S., and Russia which have been developing their own digital currencies.
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