This article has been republished with permission from Binance News.
According to Cointelegraph, the European Union’s financial services chief, Mairead McGuinness, believes there is no reason to rush the digital euro project until after the next European elections in June 2024. McGuinness suggests that the EU’s central bank digital currency (CBDC) project should be approached ‘quietly and slowly’ by the next EU Commission, which will be appointed by the then-incoming parliament.
During her speech at Brussels-based think tank Bruegel on September 6, McGuinness mentioned the European Central Bank (ECB) would be deciding the project’s fate in October. She emphasized the need to explore the option of a digital euro as cash usage decreases and people increasingly rely on cards, phones, and e-commerce for transactions.
In June, the European Commission proposed a legislative plan for a digital euro, which includes provisions for free essential digital euro services, privacy protection, and offline payments. Banks, insurers, and funds would have to share customer data with fintech companies in exchange for compensation. ECB executive board member Fabio Panetta has publicly supported the Commission’s plan, calling the European CBDC ‘a new paradigm for preserving monetary sovereignty’. The investigation phase of the digital euro project is expected to be completed by October 2023, after which the ECB will proceed with further development and technical solutions testing.