- On June 28, the European Commission submitted its recommendations and the corresponding bill
- The ECB will review it by the end of October this year, after which the Governing Council will decide
- If the bill is approved, it will provide legal support for the project’s further development
The European Commission presented a bill on the digital euro yesterday, June 28. The Bill forms the normative framework for moving the initiative forward. The ECB said it would consider it by the end of November, after which the Council will make a final decision.
The official response from the regulator can be found here.. Note that if the ECB Governing Council approves the proposed bill, it will be the key to the next phase of the project.
This was stated in late May by Fabio Panetta. Then he shared his prediction that the digital euro will enter circulation in 3-4 years. But this is only possible 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 CBDC implementation.. At the same time, the potential of the project was noted as “very high.”
Digital euro is conceived as a partially anonymous payment solution with zero fees. At the same time, e-EUR will be available at the household level, as it will be implemented in banking applications.
And thanks to the new IMF platform, the digital euro can be exchanged for another CBDC, allowing to overcome regulatory difficulties in different jurisdictions.
Despite these advantages, not everyone likes the idea of launching such a payment solution. For example, in Slovakia, the government has enshrined the constitutional right of citizens to pay for goods and services in fiat currency. It only emphasizes the fact that this measure is directed against possible pressure from the EU regarding the transition to CBDC.
It is a measure to prevent the introduction of the CBDC.