The European Central Bank President Christine Lagarde stated the European Commission would unveil a digital euro legislative proposal soon. Meanwhile, EU legislatures would explain the new digital currency’s status as a legal tender and determine related privacy features.
EU Commission Proposes Eurozone’s Digital Currency Legislation
The European Central Bank head revealed that Eurozone’s authorities made impressive steps in assessing the possible risks, benefits, and rationale of a CBDC (central bank digital currency). She confirmed that during a meeting dedicated to the common currency’s digital version.
Christine Lagard stated they would direct their efforts to the digital euro’s concrete design and embed the digital currency into an authorized framework.
The leading executive emphasized that the EU watchdogs will remain crucial in this area, stating that she expects a legislative proposal for digital euro establishment soon.
The Brussels’ executive body remains the primary participant in the EU’s complex legal processes, alongside the Council of Europe and the European Parliament, and remains accountable for proposing new policies.
The ECB statement shows Lagarde stating that co-legislators should balance competing public goals. She reiterated two aspects – the virtual euro’s privacy and legal tender status.
New Legislation Targets Digital Euro’s Legal Tender Status and Privacy Features
Meanwhile, 43% of interviewees, during a public consultation about the digital euro, prioritized privacy as the vital feature of the impeding CBDC launch. The euro zone’s financial authority president stated that the coin should satisfy people’s anticipations to remain attractive to the masses.
Lagarde said they should ensure privacy level matching the current electronic transaction system while excluding complete anonymity. Also, she cited anti-money laundering regulations and limiting the virtual euro for investments.
Nevertheless, she didn’t overlook massive privacy for low-risk, low-value, and offline transactions. Clarifying the other factor, she stated that it’s a constitutional characteristic of cash to be legal and that would apply awaited digital euro.
That means allowing people to pay with the CBDC anywhere. Moreover, it includes digital transactions in P2P payments, e-commerce, and physical stores.
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