
While crypto reform continues its course in Europe, the digital euro project continues to be talked about. Some politicians are making every effort to accelerate its development and commissioning. This, despite all the criticism weighing on this initiative sold as being beneficial for users. However, these threats, among others, justify that the process of creating this digital currency, which is none other than a CBDC, be slowed down.
In short
- Mairead McGuinness, the European Commissioner for Financial Services, calls for slowing down the development of the digital euro.
- McGuinness suggests waiting for the new European Commission in 2024 to address the issues related to this digital currency.
- Although she is not against the project, McGuinness advocates a thoughtful approach to preserving financial stability and the integrity of the European monetary system.
Suggestion of a moratorium on the digital euro…
Accelerating the arrival of the digital euro on the financial markets is a bad idea. This is essentially the opinion of Mairead McGuinness, the European Commissioner for Financial Services regarding this CBDC project. An initiative which, as a reminder, is causing a lot of talk, like crypto news.
The specialist does not deny the fact of wanting to implement this initiative presented as ambitious. But working to get it back on track as quickly as possible is not the best solution in his opinion. Especially since a new commission is about to enter the scene.
Mairead McGuinness thinks that we should give the latter the opportunity to comment on the project. For her, this is a choice allowing the next European Commission to calmly address the issues surrounding the digital euro. The new team should enter service in 2024. A year which will also see the MiCA regulation on cryptos take full effect.
It must be said that officially, Mairead McGuinness is not against the digital euro project. An initiative that must be remembered does not concern cryptos strictly speaking. At a recent event organized by the Bruegel think tank, the expert clearly stated his position on this subject.
Indeed, she noted that as things stand, the fate of the initiative would be determined by the European Central Bank (ECB). The investigation phase led by this should end in October.
Another point made by Mairead McGuinness is the current decline in the use of cash. This, for the benefit of card and mobile phone payments. An argument put forward by the promoters of a European CBDC.
This, on the pretext of the passage of the proliferation of electronic commerce and online activities. Activities, which would be favorable reasons for a digital alternative, to central bank funds, traditionally kept in cash.
For a thoughtful introduction to the project
Basically, Mairead McGuinness does not refute these arguments. What she advocates, however, is that the digital euro be introduced in a thoughtful way. This, she said, would preserve the integrity of the monetary system and the financial stability of Europe.
We realize that in the end, the interests of users have taken a back seat. Recently, it has been proposed to oblige banks, insurers and asset managers to communicate customer data to fintechs. Companies that are often linked to the crypto industry.
Certainly, the measure aims to promote innovation in the digital payments ecosystem. The fact remains that it will alienate the recognized rights of users over their personal information.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service
daily and weekly so you don’t miss anything of the Tremplin.io essentials!