According to Politico, the European Union plans to introduce a digital euro bill in early 2023. Next month, a consultation process on the usage of a digital euro will also be launched.
On February 9, the European Union said that it will introduce a digital euro bill in 2023. According to Politico, the European Commission stated that the law will provide the legal framework for the digital fiat currency that the European Central Bank has long considered. The digital euro’s research phase was originally reported in July 2021, and it was then confirmed to span up to 24 months.
However, with the bill’s official release, it’s obvious that the region’s officials intend to move swiftly with a digital currency. The law will be reviewed and discussed with EU capital and the parliament before being passed, if at all. The article also mentions that a public consultation on the utility of the digital euro will be published soon.
The European Union finance head Mairead McGuinness also discussed the measure earlier this week at the Afore Consulting fintech conference, stating that:
“goal is to table [present] legislation in early 2023. A targeted legislative consultation in the coming weeks.”
Christine Lagarde, President of the European Central Bank, has spoken out in favour of cryptocurrencies, citing their ability to boost payment systems. However, she and other EU CEOs feel that there isn’t much time available as crypto and stablecoins gain popularity.
Over the last several months, there has been a flood of information on central bank digital currency (CBDC) development. Governments are doing so because they are aware of the technology’s capabilities as well as worries about stablecoins and cryptocurrencies.
Only a handful of the numerous nations that have declared CBDC plans are India, Jamaica, South Korea, and Malaysia. The US has yet to make an official decision, despite the fact that the Federal Reserve Chairman has suggested that CBDCs and stablecoins might coexist.
Governments do not want stablecoins to intrude on the sovereignty of national currencies, and Meta’s Diem intentions were thwarted by regulatory concerns. Aside from additional CBDC announcements, stablecoin regulation is planned in 2022.
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