EU Legislation for Digital Euro Is Put on Hold: Source

A bill covering privacy and distribution of the central bank digital currency, originally scheduled for June 28, will be delayed

AccessTimeIconJun 19, 2023 at 1:45 p.m. UTC
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European Union legislation needed to underpin a digital euro, originally due to be published June 28, has been put on hold, CoinDesk has been told.

The move follows the leaking of the draft bill, which covers privacy and technical issues for the central bank digital currency (CBDC), and a statement by finance ministers that appeared to question the motivation for the plan last week.

The timeline for the draft bill, intended to be published ahead of a firm European Central Bank decision on whether to issue the currency in a digital form, has shifted several times. It was at one stage planned for May.

The bill was most recently been scheduled for discussion and publication at a June 28 meeting of the European Commission’s decision-making body, according to a tentative forward agenda published last week. The commission did not provide a reason for the delay, nor did it give a new date for publication.

The plans were also discussed by finance ministers from the euro area at a regular Thursday meeting.

Ministers stressed the “importance of developing a compelling and clear narrative regarding what would be the added value of this development” in terms of a difference to the economy and citizens’ lives, Irish Finance Minister Paschal Donohoe in a statement after he chaired the talks, adding that “within our institutions ministers want to support this work but also look at how we can further develop that narrative.”

The legislative text seen by CoinDesk last week sought to bar banks paying interest on digital euros and merchants charging for using it.

CoinDesk has reached out to the European Commission for comment.

Edited by Sheldon Reback.

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Jack Schickler

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


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