The European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, Mairead McGuinness, believes there’s no cause to rush the digital euro till after the following European Parliament elections in June 2024. In her opinion, the European Union’s central financial institution digital foreign money (CBDC) challenge ought to be approached “quietly and slowly” by the following European Commission, which will probably be accredited by the incoming parliament.
McGuinness mentioned the digital euro throughout her speech at Brussels-based assume tank Bruegel on Sept. 6. She highlighted that the European Central Bank (ECB) would determine the challenge’s destiny in October. However, the official added there’s a necessity to discover this feature:
“Cash is less in use. We are using our cards and phones to buy, we’re doing e-commerce, and if there were a time when cash was very much diminished, then where do we have public money — the central bank public money — if it’s not in cash? We need a digital version of this”
In June, the European Commission proposed a legislative plan for a digital euro. The proposal consists of provisions free of charge important digital euro providers, privateness safety and offline funds. Banks, insurers and funds must share buyer knowledge with fintech corporations in trade for compensation.
Recently, ECB government board member Fabio Panetta publicly supported the commission’s plan, calling the European CBDC “a new paradigm for preserving monetary sovereignty.”
The investigation section of the digital euro challenge ought to be accomplished by October 2023. After that, the ECB will proceed with additional growth and technical options testing.
The 2024 European Parliament election is scheduled to be held from June 6–9, 2024. According to EU procedures, the newly elected parliament will then approve or reject the president and different members of the European Commission, whose candidatures are proposed by the European Council.