In a public consultation launched on Tuesday 5 April, the European Commission is seeking stakeholders’ views until 14 June on the proposed creation of a digital euro as a new form of central bank money that could be introduced in 2026 (see EUROPE 12762/17).
The EU institution is asking stakeholders about their expectations and concerns regarding the digital euro, particularly in relation to privacy. Privacy will depend on the extent to which data on digital euro payments are stored and on the data storage model (centralised or decentralised).
Other questions concern the role of this emerging digital currency for retail payments and financial stability, as well as aspects related to anti-money laundering rules.
On Monday 4 April in Luxembourg, the Eurogroup discussed the privacy issues surrounding the creation of the digital euro, based on options presented by the European Central Bank, the EU institution piloting the project.
“A risk based approach could be followed to allow for more privacy in the case of less risky and smaller transactions”, said its President, Paschal Donohoe, after the debate.
He noted the “support” of some euro area countries “to explore a limitation of offline functionality to low value payments in close proximity”. “This could improve the financial inclusion objectives of the digital euro and of its convenience, potentially enhancing its overall success”, he argued.
The Eurogroup will discuss the digital euro again in June.
If the ECB decides to go ahead with the project, the Commission will have to present a specific legislative proposal.
Participate in the public consultation: https://aeur.eu/f/15f (Original version in French by Mathieu Bion)