- On June 28, the European Commission submitted its recommendations and the relevant bill
- The ECB will consider it before the end of October this year, after which the Board of Governors will decide
- If the bill is approved, it will provide legal support for the further development of the project.
Yesterday, June 28, the European Commission submitted a bill on the digital euro. The bill forms the normative basis for further promotion of the initiative. The ECB noted that they will consider it before the end of November, after which the Council will make a final decision.
The official response from the regulator can be found at link. Note that if the ECB Governing Council approves the proposed bill, this will be the key to the implementation of the next phase of the project.
Fabio Panetta announced this at the end of May. Then he shared his forecast that the digital euro will enter circulation in 3-4 years. But this is possible only if there is a regulatory framework and support from the regulator.
In its proposal, the European Commission noted that the long-term benefits outweigh the possible costs of implementing a CBDC. At the same time, the potential of the project was noted as “very high”.
Recall that the digital euro is conceived as a partially anonymous payment solution with zero commission. At the same time, e-EUR will be available at the household level, since it will be introduced into banking applications.
And thanks to the new IMF platform, the digital euro can be exchanged for another CBDC, which will help overcome regulatory difficulties in different jurisdictions.
Despite these advantages, the idea of launching such a payment solution is not to everyone’s liking. For example, in Slovakia, the government secured the constitutional right of citizens to pay for goods and services with fiat. Here they only emphasize the fact that this measure is directed against possible pressure from the EU regarding the transition to CBDC.