A bill for a digital euro will be introduced by the European Commission in 2023, according to the European Commission. At a fintech conference on Wednesday, EC finance chief Mairead McGuinness officially revealed the EU’s formal study of digital euro legislation, as first reported by Politico.
The European Central Bank (ECB) is already experimenting with digital euro designs and technologies, with a prototype expected in late 2023. The consent of Eurozone governors is required if a digital euro is to be introduced. If they give their approval, the digital euro may be in circulation by 2025.
The digital euro is a Central Bank Digital Currency (CBDC), a financial instrument being studied by central banks all over the world. The heightened interest in CBDCs stems from growing concerns that the popularity of cryptocurrencies may eventually threaten native currencies. The European Central Bank (ECB) conducted research and published a report on digital currencies last year. It was discovered that a digital euro might help reduce interest rates, speed up transaction processes, and reduce the need for currency.
