The European Commission intends to launch a digital euro bill in 2023. The commission’s plans to introduce a bill are the most unambiguous indication yet that a digital euro might be implemented in the coming years. The ECB has been sending confusing signals regarding the future of a digital euro since last year.
An ECB official indicated in September, shortly before the start of the two-year research into a digital euro, that the initiative wouldn’t ensure the deployment of a digital currency. Later, Fabio Panetta, a European Central Bank’s executive board member, stated that a possible digital euro would ‘likely’ be legal tender.
Before becoming legislation, the European Commission will have to coordinate the bill with the governments and legislatures of the member states. The ECB is now conducting tests with the digital euro. By the end of 2023, the monetary authority intends to have a prototype for the CBDC.
To complete the project, an impact assessment will be conducted by the European Commission to determine if the digital euro has the potential to undermine the financial system. The governors of the eurozone will assess if it is worthwhile to mint a virtual currency, and the digital euro might be produced by 2025.
Why a digital euro?
For everyday payments, a digital euro would be a quick, simple, and safe option. It would promote the digitization of the European economy and aggressively promote retail payment innovation.
The European Central Bank (ECB) and the euro area’s national central banks examine the advantages and dangers to ensure that money continues to serve Europeans well.
“Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money.”Christine Lagarde, President of the ECB
A digital euro would ensure that citizens in the euro region have free access to a simple, generally acknowledged, safe, and trustworthy method of payment in this new era.
A digital euro would be a supplement to money rather than a substitute. The Eurosystem will continue to make it possible to obtain currency anywhere in the eurozone. It would provide you with more options for paying and make it easier to do so, increasing accessibility and inclusion.
European Commission’s decision to release a digital euro will pave the way to revolutionize the world of digital currencies.