Key Takeaways:
- The European Union will prioritise legislation regarding a central bank digital currency over the next two years.
- According to a Commission official, a proposal for a digital euro may appear in the second quarter of 2023.
Central bank digital currencies (CBDCs) are grabbing the interest of many financial institutions with trial programs that run all over the globe. Banks and other financial market players are already predicting possible effects on a number of their basic business operations, such as capital markets, financing, and payments.
The Joint Declaration on EU legislative priorities for 2023 and 2024, which contained a section on the establishment of a CBDC for the EU, was signed on Thursday by Roberta Metsola, president of the European Parliament, Petr Fiala, prime minister of the Czech Republic, representing the Council of the European Union, Ursula von der Leyen, president of the European Commission, and Petr Fiala, prime minister of the European Union, Petr von der Leyen, president of the European Commission,
The European Commission reportedly started making plans for the prospective introduction of the digital euro in April. Even the commission tweeted out the information about the scheme.
According to the official statement, the EU will offer the analysis of EU economic governance the priority it deserves in order to ensure that it supports the economic systems of the EU and its Member States. It will also strive to improve the capital markets, the role of the euro, including the digital euro, and complete the banking union.
The authorities work hard to advance the worldwide tax reform. support global sustainable growth and will seek to quickly reach an agreement on a new customs code and broad scheme of tariff preferences.
The European Union’s anti-money laundering package also figured on the list of priorities. The European Parliament’s policymakers are negotiating the AML rule.
Decentralized finance, DAOs, and NFTs have all been discussed. An EU-wide anti-money laundering authority is projected to supervise regulations, particularly those pertaining to crypto businesses.
Christine Lagarde, president of the European Central Bank (ECB), earlier announced that the European Commission was working on publishing a legislative proposal on a digital euro soon.
The prompt implementation of a legal framework for the digital euro would, in Lagarde’s words, “send a strong signal of political support” and provide all stakeholders with the legal certainty they need to get ready for its potential introduction.
In March 2023, the conceptual design will come to an end, and in October 2023, a final decision will be made regarding whether to adopt a euro CBDC. According to ECB executives, a digital euro will probably have a restricted number of individual transactions and storage limits.
