Digital Euro: EU unveils new plan in the face of hostility

The CBDC project envisaged by the European Union (EU) has been stalling for several months because it is meeting with the fiercest resistance. A hostility which is such that the European Parliament’s Economic and Monetary Affairs Committee has called for a slowdown on the project.

A legislative plan to get the EU’s digital euro project accepted

Recently, the EU, via the European Parliament, had recognized the need to review the strategy for launching the digital euro. Obviously, she is coming back to the charge with, this time, a new plan to have her CBDC project accepted.

Indeed, the European Commission announced, on Wednesday 28 June, its proposal of a legislative policy around the digital euro. The final idea of ​​this initiative is to promote the accessibility of this CBDC to European citizens.

The proposed regulatory strategy also takes into account a number of provisions. Rules whose implementation should promote free basic services in digital euros. This, by protecting the privacy of users, among other things.

The European Commission’s new regulatory plan also proposes granting compensation to promote digital finance. The latter would be allocated to financial institutions and insurers.

This, in exchange for sharing user data with Fintechs. This would be a way of guaranteeing the availability, in real time, of customer-related information.

Ultimately, the European Commission’s objective is to expand the payments market, which is currently controlled by the banks. An ambition that would therefore benefit Fintechs offering alternative financial services. In addition, the implementation of this plan should not neglect the requirements related to the fight against money laundering and the financing of terrorism.

“We look forward to continuing our collaboration with the other institutions of the European Union towards the establishment of a digital euro, in order to ensure that our currency is fit for the digital age”said Christine Lagarde, President of the European Central Bank.

It remains to be seen whether this new strategy will meet with the necessary enthusiasm. Indeed, many oppose the European Union’s proposed CBDC. A project designed, according to them, to be an instrument of financial control.