Eurozone Finance Ministers Support Digital Euro Focus on Privacy and Political Decisions
Eurogroup, the group of European finance ministers, emphasizes that the introduction of a digital euro requires important political decisions that must be carefully analyzed and made at the highest political level before implementation.
On January 16th, the Eurogroup released a statement underscoring the importance of keeping member states and the Eurogroup informed of developments in the creation of a digital euro.
This statement came on the same day as the publication of a report by the European Central Bank outlining progress made in the early stages of research for the digital euro. The Eurogroup emphasized the need for close collaboration between the European Central Bank and European Commission in this process.
As the world continues to explore the potential of Central Bank Digital Currencies (CBDCs), the European Union is among the many jurisdictions actively researching. While other countries are moving forward with their plans, the United States has yet to fully commit to the idea. The EU Commission is expected to present a proposal for a digital euro bill by October 2023, and EU leaders will ultimately decide whether to move forward with the digital euro.
Eurogroup pointed out that CBDC should complement cash, not replace it, have legal tender status, and ensure a high level of privacy. They also stressed the importance of wide accessibility, environmental considerations, and preventing money laundering and tax evasion while maintaining user trust. They supported offline functionality and the potential role of supervised intermediaries in the digital euro project.
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