The ECB investigation is now running parallel with the European Commission’s preparations for undertaking the necessary legislative process. And as soon as the Commission publishes its proposal — which we expect to come in May — the co-legislation process will begin and, crucially, national parliaments will undertake their usual role of overseeing European Union legislation.
Meanwhile, euro area finance ministers have been part of this reflection process since the start, representing the views of European citizens. And thus far, as the Eurogroup, we have discussed many of the key issues associated with a digital euro, including privacy and the trade-offs with other policy objectives like countering terrorist financing and preventing money laundering, the possible business models of intermediaries, and any potential implications for the financial system. We have published the summaries of these discussions, as well as a statement outlining the agreed Eurogroup positions on the digital euro, in the name of transparency.
It’s important to note that while the move toward cashless payments continues, cash still plays an important role, and all involved in this project are clear that a digital euro won’t replace cash. Rather, it would be another way to make payments, responding to citizens’ and firms’ developing preference for making them digitally.
Central banks have a mandate to maintain the value of money — independent of its physical or digital form — and by introducing a euro CBDC, the aim is to protect the value and sovereignty of our common currency and ensure it cannot be supplanted by a digital currency from another jurisdiction or a private company.
To succeed, the digital euro will need to ensure and maintain users’ trust — and for this, privacy is both a key dimension and a fundamental right. The digital euro should be safe and resilient, it should be easy and convenient to use, and it should be widely accessible to the public.
To prevent negative consequences for the financial sector, a digital euro should be mainly used as a means of payment and not become an instrument for financial investments. And supervised intermediaries — similar to the banks and payment service providers we have now — should be involved in its handling.
