Brussels Will Repeal Digital Euro Law Soon, Says ECB’s Lagarde – Financial Bitcoin News

Christine Lagarde, president of the European Central Bank, said that the European Commission will present a legislative proposal on the digital euro in the near future. EU lawmakers are expected to determine the new currency’s legal tender status and define its privacy features.

The EU Commission will propose legislation for a Eurozone digital currency

The head of the European Central Bank (ECB) said at a conference dedicated to the digital version of the digital currency that the authorities of the euro zone have already made good progress in justifying the central bank digital currency (CBDC) and examining the potential benefits and risks. common currency.

Christine Lagarde said in a video message that the focus of their efforts is now on the concrete design of the digital euro and its inclusion in the legal framework. This is an area where EU legislators will play an important role, the top executive stressed, explaining:

Therefore, I look forward to the legislative proposal for the creation of a digital euro that the European Commission will soon propose.

The executive body in Brussels, along with the European Parliament and the Council of the EU, is one of the main participants in the complex legislative process of the European Union and is responsible for proposing new laws.

In remarks published by the ECB, Lagarde noted that both lawmakers must now strike a balance between competing public objectives. He mentioned two aspects in particular – privacy and the digital euro’s legal tender status.

New Legislation to Define Privacy Features and Legal Tender Status for the Digital Euro

Recalling that 43% of respondents to a public consultation on the digital euro rated privacy as the most important feature of the upcoming CBDC, the president of the eurozone monetary authority admitted that the coin must meet people’s expectations to be attractive. In this regard.

“We need to provide at least the same level of privacy as existing electronic payment solutions,” Christine Lagarde said, citing the need for anti-money laundering rules and limiting the use of digital payments. euro is intended for investment. However, he did not rule out greater privacy for low-value, low-risk and offline payments.

Touching on the other aspect he emphasized, Lagarde insisted that it is a constitutional feature that cash, like the money of the central bank, is a legal tender, and that the same principle should apply to the digital version of the euro, which citizens can use to pay everywhere. This should include digital payments in physical stores, e-commerce and peer-to-peer payments, the ECB chief detailed.

In her address, Christine Lagarde also highlighted the importance of the upcoming Markets in Crypto Assets (MiCA) legislation and listed the emergence of cryptocurrencies such as bitcoin and ether among key developments leading to a potentially disruptive transformation of the traditional payment model.

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CBDC, Christine Lagarde, Conference, Digital Currency, digital euro, ECB, EU, European Central Bank, European Commission, Lagarde, legal framework, Legislation, legislative proposal, President

Do you expect the EU Commission to propose a digital euro soon? Let us know in the comment section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes to quote Hitchens: “Being a writer is more about who I am than what I do.” Along with cryptocurrency, blockchain and fintech, international politics and economics are two other sources of inspiration.

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