With 426 votes in favor, the European Parliament has approved moving to the next stage to launch and implement the digital euro in the eurozone. Now, the parliament will have to negotiate with member states and agree on a common proposal for the unified digital currency.
Key Takeaways
EU Parliament advanced the digital euro, moving the CBDC into final negotiations with member states.The asset will provide free basic accounts and holding limits, protecting commercial bank liquidity.The ECB will use the CBDC to counter stablecoins, reducing European dependence on external providers.The currency, first proposed in 2023 as an instrument enabling Europe to maintain its monetary sovereignty and put digital cash in the hands of its citizens, now enters into a new state of negotiations, with the parliament discussing the details of an upcoming implementation with member states.
Fernando Navarrete Rojas, the rapporteur who will lead negotiations, stressed that the digital euro would become a new electronic form of money and would not substitute cash.
Among the key positions of the parliament are the wide acceptance of this new currency, with exceptions applying to small and micro enterprises that don’t accept other digital payments, and the establishment of privacy safeguards for transactions.
The provision of digital euro basic services, such as opening accounts and managing funds, would be free, including access to at least one payment instrument.
In its initial phases, there will be a cap on the maximum amount of digital euros a person can hold to protect the financial system.
