The European Commission published a proposal yesterday that will be the legal foundation on which the ECB could launch a digital euro.
THE EU TOOK its first significant step towards launching a digital version of the euro, a controversial project that has been questioned by politicians and banks.
The currency would be available to individuals living in the euro zone and for visitors. It would offer an additional payment option for citizens to use online and offline with their digital wallets, thus ensuring as much anonymity as coins and banknotes.Digital euro enthusiasts say it will complement cash and ensure the ECB does not leave a gap later filled by private – usually non-EU – players and other central banks.
The ECB and the commission “have yet to make a compelling case of why we need the digital euro and what added value it will deliver,” German MEP Markus Ferber said. Many means of payments are “not necessarily European”, she noted, adding it was “very unhealthy to rely on one single source of payment”.Others argue, however, that the bloc’s plans spell trouble unless the EU takes necessary steps.
The proposal indicates there will be a limit to how much money people can keep in digital euros. ECB officials have suggested a cap of €3,000. The ECB welcomed the commission’s proposal, which it said offered “private intermediaries appropriate economic incentives to distribute the digital euro as they do other digital means of payment, while preventing excessive fees for merchants”.A public consultation showed that the number one priority when it comes to the digital euro is privacy.
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