European Commission opens a consultation on the Digital Euro

The consultation launched to gather opinions on users needs and expectations over a digital euro and how to make it available for retail payments.

The European Commission has launched a targeted consultation on a digital euro with the aim of gathering opinions on users’ needs and expectations for a digital euro and on how would be available for retail payments, while preserving the legal tender of cash at the same time.

As explained by the Commission, “in March 2021, the Eurosummit called for a stronger and more innovative digital finance sector and more efficient and resilient payment systems and stated that exploratory work on a digital euro should be taken forward. For a digital euro to be used as the single currency, concurrently with euro banknotes and coins, it would require a Regulation of the co-legislator, upon a proposal by the Commission.” The consultation complements the public consultation conducted by the ECB between October 2020 and January 2021 and is part of the Digital Finance and Retail Payment Strategies launched on September 24th 2020, which supported competitive home-grown and pan–European payment solutions and the development of a digital euro.

The consultation, which will last four weeks, aims to collect further information on expected impacts on key industries (financial intermediation, payment services, merchants), users (consumer associations, retailers’ associations), chambers of commerce and other stakeholders in international trade. This targeted consultation will gather further evidence on users’ needs and expectations for a digital euro; its role for the EU’s retail payments and the digital economy; how would be available for retail use while continuing to safeguard the legal tender status of euro cash; its impact on the financial sector and the financial stability; application of anti-money laundering and counter terrorist financing (AML-CFT) rules; privacy and data protection aspects; international payments.