A European Union project quoted by Reuters supports the need to develop a digital euro. According to the document, Member States should develop a common approach to cryptocurrencies and accelerate the development of a digital currency at Union level.
The project has been prepared by the Finnish President of the European Council and awaits amendments from the finance ministers of the Member States. In its current form, the document would escalate the campaign to regulate cryptocurrencies in the European Union. There are, for example, proposals to ban high-risk projects and provisions that would prevent a stable cryptocurrency like Libra
Regarding a possible digital euro currency, the project provides:
“The ECB and other EU central banks could usefully explore the opportunities as well as the challenges of issuing digital currencies of the central bank, including taking concrete steps in this regard.”
The project is on the agenda of the finance ministers of the EU member states from November 8, with a view to its adoption at the next meeting on December 5.
An idea supported by the European Central Bank (ECB)
ECB board member Benoit Coeure said in September that the bank should “step up” its plans for a European digital euro.
In its most ambitious version, the project could allow consumers to use electronic cash, which will be deposited directly with the ECB, without the need for bank accounts, financial intermediaries or counterparty compensation.
This would allow the ECB to take over the processing of digital payments and reduce transaction costs. Coeure acknowledged that such a project would pose technical challenges, and the opposition from the banks is very likely.
“We need a robust regulatory framework to deal with virtual currencies,”
said Markus Ferber, one of the leaders of the largest group in the European Parliament.
“The European Commission has not been proactive enough so far. With the Libra threat on the horizon, now is the time for action. “
Ferber pointed out.
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