European Commission Starts Consultation Around Digital Euro

The European Commission is calling on financial services specialists to give their take on the potential rollout of a digital euro.

In a notice released on Tuesday, the European Commission’s Directorate-General for Financial Stability, Financial Services, and Capital Markets Union stated that it is in the process of preparing an assessment around the expected impact of central bank digital currencies on financial service providers, retail users and chambers of commerce.

The commission will consult with industry specialists around issues relating to the digital euro. These issues include international payments, privacy, and the impact that the digital euro will have on the financial sector as well as on financial stability.

Furthermore, the commission will also explore methods of implementing digital euro use cases alongside cash payments, anti-money laundering rules, and rules around combating the financing of terrorism. 

The consultation document released by the commission stated, “For a digital euro to be used as the single currency, concurrently with euro banknotes and coins, it would require a regulation of the co-legislator, upon a proposal by the commission”.

The document added, “Moreover, additional legislative adjustments of the current EU legislative framework to adjust to the digital euro and possibly to digital currencies issued by central banks of non-euro area member states may be needed.”

These consultations around the digital euro will complement those conducted by the European Central Bank. So far, feedback received from the general public and merchants has suggested that rolling out a digital euro could be beneficial for both online and physical retail outlets.