The European Commission has announced that a bill for a digital euro will be proposed in 2023. As reported by Politico, EC finance chief Mairead McGuinness officially disclosed the EU’s formal consideration of digital euro legislation at a fintech conference on Wednesday. “Our goal is to table legislation in early 2023,” the Commissioner for Financial Service said. “A targeted legislative consultation in the coming weeks.”
The ECB is already experimenting with designs and systems for a digital euro.
The European Central Bank is already experimenting with designs and systems for a digital euro, with a prototype expected sometime in late-2023. If a digital euro is to be implemented, it will require the seal of approval from Eurozone governors. If they give the green light, then the digital euro could be ready for issuance by 2025. The digital euro is a central bank digital currency (CBDC) — a financial instrument that central banks around the world are exploring very seriously.
“If we don’t satisfy this demand, then others will do it.”
The increased interest in CBDCs has emerged from growing concerns that the growing popularity of cryptocurrencies will eventually undermine domestic currencies. “If we don’t satisfy this demand, then others will do it,” ECB Executive Board member Fabio Panetta said in mid-November, pushing for the implementation of a digital euro. As reported last year, the ECB conducted research and published a report on digital currencies. It found that a digital euro may help lower interest rates, speed up transaction processes and decrease cash use. Interest in CBDCs has taken off with Kenya’s central bank recently seeking public input around a digital shilling, while India announced a digital rupee earlier this month.