The European Commission stated in a consultation issued on Tuesday that a digital euro may require broad-ranging legislation in areas like privacy and anti-money laundering. The appeal for proposals was viewed as the first move toward Brussels legislation.
The survey, open until May 3, asks about matters such as ease of use, availability, costs, standards, and the holdings limitations required to ensure financial stability. According to the consultation, the digital euro might be utilised by EU citizens, visitors, or commercial partners.
It outlines ideas for how the architecture may safeguard privacy while also allowing for anonymity between the person trading or their banks. Privacy emerged as the most contentious issue in a European Central Bank consultation on the subject last year.
In a stage that will remain through September 2023, the ECB is presently exploring aspects of how the plan would function. An ECB presentation to finance ministers on Monday outlined a variety of methods for protecting privacy, a problem that ranked first in a recent study of people’s fears about new technology.
National ministers from across the EU said in a statement on Tuesday that new legislation would be needed to support the initiative, and that digital money should not attempt to replace ordinary banknotes and coins.
Beginning in June, EU finance ministers will consider other sensitive topics like the influence on financial stability and the involvement of private banks or payment businesses in deploying the technology.
