The European Parliament has once again taken a step towards the introduction of the digital euro. A majority of the competent parliamentary committee has approved the proposal, allowing negotiations with the EU Member States on the final legislation to begin.
The digital euro is a digital version of cash issued by the European Central Bank (ECB). The new means of payment is intended to complement existing payment options, such as bank accounts and cash, rather than replace them. Consumers will retain the freedom to decide for themselves how they wish to pay.
According to the current plans, the digital euro can be used both online and offline. In the case of offline payments, transactions are processed directly between devices, which is meant to better protect users’ privacy. In addition, with the digital euro the European Union aims to reduce dependence on foreign payment networks such as Visa and Mastercard, and to strengthen the European payment infrastructure.
To address privacy concerns, various safeguards have been included in the proposal. For example, governments and the ECB will not be able to track what people spend their digital euros on. There will also be a maximum amount that users are allowed to hold, and no interest will be paid on the digital balance.
The introduction of the digital euro is therefore not yet final. Before the means of payment becomes reality, the European Commission, the European Parliament and the Council of the European Union must reach agreement on the final legislation. If the remaining legislative process goes according to plan, the digital euro could be introduced from around 2029 at the earliest.
Emerce
Subscribers 0
Fans 0
Followers 0
Followers