Brussels, September 4, 2023
In a recent address to the Committee on Economic and Monetary Affairs of the European Parliament, Fabio Panetta, Member of the Executive Board of the European Central Bank (ECB), discussed the transformative potential of the digital euro. Panetta highlighted how the digital euro could address numerous challenges posed by private payment services and shape Europe’s digital future.
Panetta acknowledged the extensive progress made in the digital euro project since its inception, including multiple reports and public releases of information. He emphasized the importance of feedback and engagement with European institutions and stakeholders in crafting an inclusive digital payment solution.
Key aspects of the legislative proposal for the digital euro include granting it legal tender status, ensuring enhanced privacy and data protection, offering basic services free of charge, and maintaining an equilibrium between public and private money. The proposal aims to strike a balance between preserving monetary sovereignty and fostering innovation in payments.
🧵 A digital euro would be a new form of central bank money, says Executive Board member Fabio Panetta. It is now up to legislators to ensure it would replicate key characteristics of cash in the digital sphere, particularly its privacyhttps://t.co/nQJzYylwpV
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— European Central Bank (@ecb) September 4, 2023
Panetta stressed the need for a digital euro that is accessible to everyone, everywhere, and free of charge, alongside cash. He also emphasized the importance of privacy in digital payments, with the digital euro designed to protect user data and offer cash-like privacy.
The ECB is nearing the end of its investigation phase, with plans to report on findings next month. The Governing Council will decide on moving to the next phase, considering legislative adoption as a prerequisite.
Panetta’s speech highlighted that the digital euro project is not only an opportunity to make Europe fit for the digital age but also to lead the global conversation on central bank digital currencies while prioritizing privacy and monetary sovereignty in the digital era.
