EU Consultation Looks at Issues With a Digital Euro

The union's executive branch got the ball rolling Tuesday on the legislation needed to issue such a currency.

AccessTimeIconApr 5, 2022 at 1:03 p.m. UTC
Updated Apr 6, 2022 at 8:50 a.m. UTC

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

If the European Union issued a digital euro, it would need to establish laws in areas such as privacy and anti-money laundering, the European Commission, the EU's executive branch, said in a consultation published on Tuesday.

The call for ideas, which is seen as the first step toward legislation from Brussels on the topic, is being made even before any formal decision has been taken on whether to issue a digital currency in the first place.

The consultation, which is open until June 14, asks questions about issues with a potential digital euro such as the ease of use, availability, fees, standards and caps on holdings needed to safeguard financial stability. The digital euro could be used by residents of the EU, tourists or trade partners, the consultation said. The document is the likely precursor to drafting laws that could come out early next year.

It sets out ideas on how the design of a digital euro could protect privacy and allow anonymity between transacting parties or their banks. Privacy emerged as the top issue in a European Central Bank consultation about a digital euro last year and remains a source of controversy.

The ECB is looking at how a plan to issue a digital euro might work in a phase that will last until September 2023. An ECB presentation given to finance ministers on Monday set out ways to protect privacy, a topic that topped a previous survey of people’s concerns about the new technology.

In a statement on Tuesday, national ministers from within the bloc – keen not to be usurped by the ECB on matters of public policy – said that new laws would be needed to underpin the measure and said the digital currency shouldn't replace regular banknotes and coins.

Starting in June, EU finance ministers will discuss other knotty issues such as the impact on financial stability and the role of private banks and payment firms in distributing a digital euro.

UPDATE (April 6, 08:50 UTC): Amends closing date of consultation in third paragraph.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

Trending

1
CoinDesk - Unknown
Animoca Brands Leads $32M Funding Round for Planetarium Labs

The capital will help the Web3 gaming company develop its community-driven network.

CoinDesk - Unknown
2
CoinDesk - Unknown
Solana Labs, Multicoin Accused of Violating Securities Law by SOL Investor

Solana’s SOL token is an unregistered security whose insiders have benefitted while retail suffered, the suit alleged.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Asia: How Inaccurate Data Misled Investors to See Massive Outflows From This Crypto Exchange; BTC Holds Steady Over $20K

KuCoin founder Johnny Lyu said those data feeds plus mislabeled, on-chain wallets propagated rumors last week that led to the token exodus; ether rises in Wednesday trading.

CoinDesk - Unknown
4
CoinDesk - Unknown
Shiba Inu Plans to Launch Stablecoin, Reward Token, Collectible Card Game

SHIB prices hardly budged on the news but gas token BONE and ecosystem token LEASH rallied.

CoinDesk - Unknown