On 28 June 2023, the European Commission released its long-awaited proposal for a digital euro. This proposal kickstarted a phase of political negotiations that should, all things being equal, lead to the adoption of a regulation of the first Eurozone central bank digital currency (CBDC). On 18 October 2023, the European Central Bank (ECB) announced that it was concluding its two-year investigation phase of the digital euro and moving towards the preparation phase.
The current proposal on the digital euro is a missed opportunity. However, it can still be remedied by the EU co-legislators. The European Parliament and European Council can still choose team people by ensuring that the digital euro has very similar benefits to public money (cash) today, that it is usable for people and that people can access it through non-profit/public intermediaries.
Digital euro: a safe and secure alternative to bank deposits?
Together with the Veblen Institute, we have published our position paper ‘A digital euro for the people’ to contribute to the design and development of a digital currency that truly serves people as a public good.
Who should benefit from the digital euro, and what features should it have? Join us at our next event on this topic, on Monday 19 June, at Press Club Brussels.
What are the potential benefits and/or drawbacks of a digital euro? We will answer in our next policy roundtable, in cooperation with the Veblen Institute.