The European Commission has developed a comprehensive plan to amend the digital euro for universal adoption and other goals in the pipeline.
The digital euro will likely go for a drastic makeover, and all for good reasons. The European Commission is the one to propose the draft changes to the digital euro, suggesting major reforms. The legislative proposals could make the digital currency a widely accepted means of payment in the region.
The proposals include the provision to make digital euros available to individuals easily through banks, ensuring wider adoption of the currency. The proposals include other benefits such as privacy protection, free basic digital euro services, and offline payments.
The European Commission has also advised a move that could help open the payments market. Major corporations like Mastercard and Visa currently control the market. The move involves banks and other financial institutions sharing customer data with fintech companies in exchange for compensation. But, the law would ensure privacy protection is upheld by all stakeholders, preventing cases of money laundering and other illegal activities.
Welcoming the legislative proposals, the European Central Bank (ECB) said in a press release, “The ECB stands ready to provide technical input to support the work of the EU co-legislators. The European Commission has recommended that the European Parliament and the EU Council consult the ECB on the proposed legislative changes. Following requests for consultation, the ECB would deliver its opinion in due course.”
The current project’s investigation will get over by October this year, upon which the ECB will take forward the next phase.