European Commission Still On Plan For A Digital Euro Bill For June 28

Key Points:

• The European Commission is still in the process of publishing the digital euro legislation on June 28.
• A measure to support central bank digital currencies on issues such as privacy, distribution, and offline transactions will be carried out.
• The CBDC plans have raised concerns about the position of banknotes and coins.

According to CoinDesk, the European Commission is back on track to publish legislation on a digital euro on June 28 after the contentious issue was earlier pulled off the executive’s agenda, the bloc’s senior financial services official stated on Tuesday.

Commissioner Mairead McGuinness said that she would go forward with a measure to support the central bank’s digital currency, which would address issues like privacy, distribution, and offline transactions. Earlier, there were sources that the bill would not be introduced on time.

McGuinness also stated the digital euro ambitions and a related bill on the legal status of currency at a Brussels event.

“We’re looking forward to presenting both proposals next week,” she said.

Bloomberg stated on June 14 that it had obtained a copy of a draft proposal from the European Commission. In terms of financial stability, the advice may compel the ECB to limit the use of a central bank digital currency (CBDC).

According to the leaked law, the new CBDC would have to be accessible for cash-style offline payments from the start, and users would not be able to design it to restrict future usage.

In the case of offline transactions, neither the European Central Bank nor payment service providers will have access to personal transaction data, though banks that distribute the currency can send financial crime authorities information about how accounts are funded if they suspect money laundering.

The CBDC’s plans have aroused concerns that they may lead to governmental spying or usurp the status of banknotes and coins.

After studying technical specifics for many years, the European Central Bank is expected to make a decision later this year on whether to proceed with the initiative.

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