The European Commission is calling on financial services professionals to weigh up the potential adoption of a digital euro.
On Tuesday, the European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets said it was preparing an assessment of the central bank’s digital currency based on the expected impact on financial service providers, retail users and chambers of commerce. The Commission will consult with industry experts on matters relating to digital euro, including cross-border payments, privacy, impact on the financial sector and financial stability, use cases alongside cash payments, and anti-money laundering and anti-terrorist financing regulations.
“The use of the digital euro as a single currency at the same time as euro banknotes and coins would require a co-sponsor’s ruling at the proposal of the Commission,” the consultation document says. “Furthermore, additional legislative adjustments to the current EU legal framework may be required to adapt to the digital euro and possibly to digital currencies issued by the central banks of non-euro area member states.”
We have just launched a consultation on the digital euro, a digital form of central bank money available to everyone as a complement to cash. What are your expectations for #DigitalEuro?#EUHaveYourSay until June 14th! — European Commission (@EU_Commission) April 5, 2022
The consultations on the digital euro will complement those led by the European Central Bank, which recently published the results of the focus groups set up in September 2021. Feedback from the general public and merchants suggests that the potential adoption of the digital euro could benefit from both online and physical retail use cases. The European Commission will accept answers until June 14.
Related: European Commission seeks sandbox operator to regulate blockchain
Mairead McGuinness, chief financial officer of the European Commission, said in February that a digital euro law would be proposed sometime in 2023. The European Central Bank is exploring the development of a digital euro as interest in central bank digital currencies seems to be growing around the world. An ECB consultation from October 2020 to January 2021 showed that a digital euro could help lower interest rates, speed up transaction processes and reduce the use of cash.