The European Commission Might Potentially Rollout a Digital Euro

Vignesh Karunanidhi
European Commission
Source: Unsplash

The European Commission has reportedly started working on rolling out its digital Euro. The Commission tweeted out the announcement.

They announced that they are working closely with financial consultants for the potential release of the digital Euro.

As per the information provided by the Commission, the consultation period will stretch from April 5, 2022, to June 14, 2022.

The targeted group for the consultation will include payment industry specialists, payment service providers, financial intelligence units, payment infrastructure providers, developers of payment solutions, merchant associations, consumer associations, retail payments regulators and supervisors, anti-money laundering (AML) supervisors, and other relevant experts and authorities.

The European Commission’s vision for Digital Euro

The European Commission’s main objective is for the digital Euro to be used as a single currency with Euro banknotes and coins. For this vision to be achieved, the regulators might need to assess the impact of such an implementation.

The current call-out for the consultation also focuses on public opinion. It will also assess the impacts on industries like financial and payment services, consumer and retail users, and chambers of commerce.

The consultation will revolve around some key topics and issues. Primarily the needs of the users and what are the public expectations regarding this potential digital Euro. It will also assess the digital Euro’s role in the retail payment and digital economy.

The Commission will also discuss safeguarding the legal tender of Euro cash and the impact on financial stability and the financial sector.

Apart from these, the other aspects of the potential digital Euro include anti-money laundering and counter-terrorist financing rules, privacy, and data protection.

While the digital Euro will be rolled out to be used within the Euro area, the cross-border questions should also be considered. That includes how tourists user and businesses can benefit from such a situation. The Commission should also consider the risks involved with such an implementation.