By Michael Scott
The finance ministers drawn from the Eurozone declared support for the research-backed digital Euro. The Eurogroup observed the need to adjust the current design while lobbying for political intervention.
The statement conveyed by the finance ministers on January 16 to conclude their Brussels meeting expressed support for digital currency introduction to the region. The statement lauded members’ present and active support provided by the Eurozone members to harmonize the introduction of digital currency.
Political Decisions Necessary in Digital Euro Design
The Eurogroup statement coincided with the European Central Bank (ECB) releasing its stock-taking update, whose content outlines the progress realized in the digital euro design. The ministers challenged the ECB and European Commission to continuously update the Eurogroup and member states on the progress of creating a digital euro during the investigative phase.
The Eurogroup members expressed unanimous support for the digital euro introduction, features inclusion, and choosing the design to integrate political support. The group’s statement detailed that political discussions should prioritize considering the environmental impacts, privacy, and financial stability-related issues. The accomplishment of political support will help harmonize the design and features that optimize compatibility with the Eurozone requirements.
Legislative Proposal by Mid-2023
In their meeting, the finance ministers lauded the progress that non-eurozone EU members portrayed through the active debate on central bank digital currencies (CBDC). The members expressed the need to contribute to such discussion actively. They acknowledged the European Commission’s decision to present the legislative proposal before mid-2023. The proposal targets establishing and regulating primary features of the digital Euro relative to the co-legislators decision.
In support of an expedited process, the Eurogroup tasked the European Commission to avoid postponing the legislative proposal. This will enable the ECB Governing Council to reassess the digital currency results promptly. In addition, the group noted that the council’s reviews, scheduled for the third quarter of 2023, will center on the outcome observed during the investigative phase.
The progress realized by the Eurogroup through active participation by member states’ finance ministers is steadying the digital euro ship. The remarkable pace shows the digital euro introduction is hardly deterred by a former adviser in the Bank of England terming CBDCs as costly and risky.