FF News Logo
Monday, March 17, 2025
MPE 2025 | FFNews

Breaking News

OakNorth Deepens Support for US Lower Mid-Market Businesses With Acquisition of Michigan-based, Community Unity Bank What Makes an Effective Partnership Within the Insurance and Insurtech Space? | Akur8 | ITC Vegas 2024 Visa and MISA Collaborate to Empower Vietnamese Businesses Through Digital Payment Solutions Neurodiversity Celebration Week: Ecommpay Commits to Neurodiversity Training Cash App Begins Roll Out of Afterpay’s Pay Over Time Offering at Hundreds of Thousands of Merchants New Research Reveals Only 25% of Young People Feel Financially Confident – Expert Shares Key Steps to Improve Money Management Kraken Introduces Colocation Service for Institutional and Individual Clients, Enabling Ultra-Low Latency Trading XRP Has the Potential to Pioneer Quantum-Ready Blockchain Security, Says D24 Fintech Group Which Fintech/Bank Logo Would You Get as a Tattoo? | FF News at Finovate Europe Cashflows Enables Mswipe to Enter UK via Innovative Acquiring BIN Sponsorship Model Mastercard Open Banking Powers Account Aggregation for Virgin Money Credit Card Customers bolttech Appoints Ridhi Chaudhary to Board of Directors Town Raises $18M to Make Taxes Painless for Small Businesses Snappi, Europe’s First Greek Headquartered Neobank Opens Its Waitlist mylo One of the First Companies to Receive Consumer Finance FRA Approval for Digital Onboarding in Egypt
Euro Digital Currency

June 29 2023

Proposed Legislation Introduces Framework for Digital Euro

Share this post:

Share on LinkedIn Share on WhatsApp
The European Commission has unveiled its legislative proposal, outlining the potential implementation of a digital euro that would be widely accessible and accepted throughout the euro area. This proposal marks a significant step towards embracing the digital age while preserving the esteemed status of the euro as a universal means of payment.

Legal Tender Status and Accessibility

Similar to banknotes and coins, the digital euro would hold the legal tender status, ensuring its acceptance across the entire euro area. The proposed legislation guarantees easy access to digital euros through banks upon request, ensuring inclusivity and leaving no one behind.

Cost-Free Basic Services and Fair Distribution

Under the proposal, basic digital euro services would be made available to users free of charge. Moreover, the legislation encourages private intermediaries to distribute the digital currency by offering them appropriate economic incentives, while simultaneously preventing excessive fees for merchants.

Privacy and Data Protection

Recognizing the importance of privacy and data protection, the proposed legislation strives to maintain a high degree of both for digital euro users. It also addresses concerns related to money laundering and terrorist financing risks. Furthermore, offline digital euro payments are enabled, providing privacy levels comparable to cash transactions.

ECB’s Endorsement and Next Phases

ECB President Christine Lagarde expressed her support for the initiative, highlighting the euro’s significance as a symbol of European integration. She emphasized the importance of adapting the currency to the digital era, ensuring its continued trust and value among citizens.
The investigation phase of the digital euro project is set to conclude in October 2023, following which the ECB’s Governing Council will decide on advancing to the next phase. This subsequent phase will focus on further developing and testing technical solutions and business arrangements. Ultimately, a decision to issue a digital euro would only be made after the adoption of the legislative act.

Safeguarding the Role of Cash

The European Central Bank (ECB) also welcomes the Commission’s proposal, which safeguards the legal tender status of euro cash. This ensures that banknotes remain easily accessible and widely accepted throughout the euro area. Preserving the role of cash in physical transactions is crucial, allowing individuals and businesses to efficiently withdraw and deposit their money.
The ECB stands prepared to offer technical input to support the EU co-legislators in their work. The European Commission has recommended consulting the ECB on the proposed legislative changes, and the ECB will provide its opinion in due course.
The proposed legislation represents a pivotal milestone in paving the way for a digital euro, encompassing the valued features of cash in the digital realm. As Europe progresses towards the digital age, the introduction of a digital euro holds the promise of a more efficient, accessible, and secure means of payment for all.

Companies In This Post

European Central Bank | Fintech Finance

European Central Bank
  1. OakNorth Deepens Support for US Lower Mid-Market Businesses With Acquisition of Michigan-based, Community Unity Bank

    Fintech

     Read more
  2. What Makes an Effective Partnership Within the Insurance and Insurtech Space? | Akur8 | ITC Vegas 2024

    Event Videos

     Read more
  3. Visa and MISA Collaborate to Empower Vietnamese Businesses Through Digital Payment Solutions

    News

     Read more
  4. Neurodiversity Celebration Week: Ecommpay Commits to Neurodiversity Training

    News

     Read more
  5. Cash App Begins Roll Out of Afterpay’s Pay Over Time Offering at Hundreds of Thousands of Merchants

    News

     Read more
FID Fraud _ FinCrime 2025 - website banner - 300 x 300
More On