EU Urged to Proceed Cautiously with Digital Euro
The EU's financial services chief cautioned against rushing the introduction of a digital euro law ahead of next year's European elections.
Instead, she urged a thorough examination of the proposal by the incoming Commission to ensure careful consideration.
The draft law aims to create a digital euro resembling physical cash, usable offline, and designed to protect public funds. Legislative processes tend to slow during European Parliament election periods, resuming after the appointment of a new EU executive later in the year.
Mairead McGuinness emphasized that while the Commission provided a digital euro framework in June, the ultimate decision lies with the European Central Bank (ECB), which is set to decide in October. This initiative seeks to address the shortage of European payment service providers.
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McGuinness highlighted the changing landscape of payments, with cash declining and digital transactions rising. She stressed the need for a digital form of public money, a duty the EU cannot overlook.
Positive Money Europe sees the digital euro as vital for maintaining a secure and accessible form of public money, especially as cash acceptance dwindles, potentially leading to increased data sharing with payment service providers.
Source: Reuters
Alexander Stefanov
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