Digital Euro Legislation Set to be Presented in May 2023

• The European Commission is drafting legislation related to the digital euro, with the proposed bill expected to be presented by May 2023.
• European lawmakers and bankers have voiced their concerns regarding the utility of central bank digital currencies.
• Mairead McGuinness, European Union’s Financial Services Commissioner, has stated that the digital euro legislation will serve as a framework to establish its legal tender status.

The European Commission is pushing forward with the development of legislation related to the digital euro. The proposed bill is expected to be presented by May 2023. This comes at a time when European lawmakers and bankers are voicing their concerns regarding the utility of central bank digital currencies (CBDC).

Mairead McGuinness, European Union’s Financial Services Commissioner, recently briefed the Economic and Monetary Affairs Committee about the upcoming legislation. She stated that the legislation is necessary in order to establish the digital euro’s status as legal tender, as well as to create the necessary rules for anti-money laundering.

Markus Ferber, a German politician and a member of the European Parliament, was skeptical about the claimed utility that the currency could have when compared to conventional modes of payment. Fabio Panetta, a member of the European Central Bank’s executive board, also shared the concerns of the European lawmakers. He stated that CBDCs wouldn’t allow restrictions on how funds are spent.

The upcoming legislation related to the digital euro is expected to address these concerns and provide clarity on how the currency will be used. It will also establish the digital euro’s status as legal tender and create anti-money laundering rules. The European Commission is aiming to present the bill towards the end of May 2023.