A bill proposing a digital euro will be introduced in the European parliament as early as 2023, according to the European Union's finance chief.
In 2023, the European Commission intends to introduce a bill for a digital euro.
According to Politico, EC finance chief Mairead McGuinness announced the EU's formal research into digital euro law on Wednesday at a fintech event.
The Commissioner for Financial Services stated, "Our goal is to table legislation in early 2023." “A targeted legislative consultation in the coming weeks."
The European Central Bank (ECB) is already evaluating concepts and technologies for a digital euro, with a prototype scheduled for late 2023. The permission of Eurozone governors will be required if a digital euro is to be adopted. The digital euro could be available for issuance by 2025 if they provide the signal.
The digital euro is a central bank digital currency (CBDC), which is a financial tool being severely reviewed by central banks around the globe. The elevated interest in CBDCs arises from rising concern that the adoption of cryptocurrencies will ultimately threaten domestic currencies.
"If we don’t satisfy this demand, then others will do it," ECB Executive Board member Fabio Panetta stated in mid-November, urging the introduction of a digital euro.
The European Central Bank (ECB) released a study on digital currencies last year after performing research. It discovered that a digital euro may assist lower interest rates, expedite transaction procedures, and reduce the need for cash.
Despite the ostensible advantages, central bankers are struggling to compete for public support. According to research performed by the UK Economic Affairs Committee and Germany's central bank, the majority of respondents oppose government-backed digital currencies, expressing doubts about the benefits and concerns about government monitoring.
However, formal interest in CBDCs has grown around the world, with Kenya's central bank recently looking for public feedback on a digital shilling, and Thailand already enacting regulations for a potential retail CBDC. The Central Bank of the Bahamas was one of the first to issue a CBDC, the Sand Dollar, in October 2020.
On either hand, China retains the first-mover benefit in the field of digital currency. With ongoing and considerable advances in the CBDC space, the country has outpaced the international community.