The EU’s executive arm will begin public consultations on the digital euro initiative. In addition, the European Commission will propose new laws to build the legal foundation for a digital version of the European Union fiat.
According to Politico, the European Commission (EC) is aiming to introduce legislation that would create the legal groundwork for a digital euro currency. The law will aid the European Central Bank (ECB) in resolving the technical aspects of the project, which began its investigative process in October 2021.
When the ECB discovered that Europeans were concerned about their financial privacy, it took action in 2020. The European Commission aims to concentrate on practical issues such as how the coin would help with ordinary transactions. The ECB is now conducting tests with the digital euro. By the end of 2023, the monetary authority intends to have a prototype for the CBDC.
To complete the project, an impact evaluation will be performed to determine whether the digital euro will disrupt the financial system. The governors of the Eurozone will evaluate if it is worthwhile to mint a virtual currency, and the digital euro might be released as early as 2025.
While the ECB’s Governing Council will make the ultimate decision, prominent EU nations like France and Germany have already urged the Eurosystem’s central bank to increase its efforts in that direction. Policymakers in Brussels and Europe’s cities are concerned that the eurozone will fall behind China, the United States, and Russia in building their own digital currency.