European Parliament advances digital euro regulation
The European Parliament's Committee on Economic and Monetary Affairs (ECON) has adopted its position on the digital euro regulation. This decision provides renewed momentum to a project of strategic importance for the future of payments in the euro area.
Parliamentary endorsement, next steps
The European Parliament's Committee on Economic and Monetary Affairs (ECON) has formally adopted its position on the 'single currency package', which crucially incorporates the regulation for the digital euro.
This significant endorsement provides renewed momentum to a project considered of strategic importance for the future landscape of payments within the euro area.
The ECON's decision, however, does not represent the final approval of the legislation.
The next critical phase involves a vote in the European Parliament's plenary session, expected in the coming weeks.
Following this, comprehensive negotiations will commence between the Parliament, the Council of the European Union, and the European Commission to establish the definitive legal text for the digital euro regulation.
This intricate process underscores the collaborative effort required to integrate a central bank digital currency into the existing financial ecosystem.
A new form of public money
The digital euro is envisioned as an evolution of the single currency, allowing citizens to use electronic money issued directly by the central bank.
This public money would complement cash and existing private payment instruments.
The initiative aims to preserve public money availability and strengthen Europe's autonomy and innovation in payments.
In parallel, the Eurosystem continues its design and experimentation work.
Banca d'Italia, with the ECB and other euro-area central banks, is involved in preparatory technical activities.
Both legislative and experimental work will proceed in parallel, with further developments expected on institutional and technical fronts in the coming months.