Digital euro proposal from European Commission seeks universal approval

The European Commission unveiled its proposed legislative plan for a digital euro on June 28, aiming to establish it as a widely accepted and easily accessible payment method. The announcement emphasized the importance of ensuring convenient access to digital euros through banks, allowing individuals to acquire them upon request and avoiding the exclusion of citizens.

In addition, the European Commission proposed a separate measure that would require banks, insurers, and funds to share customer data with fintech firms in exchange for compensation. This proposal aims to foster the advancement of digital finance by facilitating the sharing of customer information.

The legislative plan also includes provisions for free essential digital euro services, robust privacy protection measures, and the facilitation of offline payments. These initiatives aim to improve convenience, inclusivity, and data security within the digital euro framework.

It is important to note that the proposal explicitly prohibits any restrictions on the types of goods that can be used with the digital euro. However, conditional payments, such as monthly utility bills or complex smart contracts, can still be facilitated using the digital euro.

The European Commission highlighted the significance of easy access to digital euros from banks in their press release, ensuring accessibility and preventing the exclusion of citizens.

Furthermore, the European Commission released a post from Fabio Panetta, a Member of the Executive Board on the ECB, and Valdis Combrovskis, Executive Vice-President of the European Commission, on June 28 to emphasize the practical benefits of the digital euro for consumers. They highlighted potential cost savings for small businesses through reduced transaction fees and the possibility of more competitive pricing. The digital euro is also expected to improve transaction efficiency and speed, reducing reliance on intermediaries.

source