European Commission will draft a bill on Digital Euro by early 2023
Digital currency is any currency or money like an asset that is stored or exchanged through the internet in real as well as in virtual space. There are different types of currencies like cryptocurrency, virtual currency and central bank digital currency. Digital currency may be centralized or decentralized.
In Centralized currency, the digital money supply will be monitored by the central bank whereas in decentralized currency the digital money supply will be monitored and transferred without the interference of the third party like banks. European Commission is about to draft a bill on a centralized currency where the supply and transfer of digital currency are controlled by the European Central Bank.
For the past two years, cryptocurrency and digital currency have hit the mainstream and especially in 2021 the interest and demand for digital currency were at a peak. India, China, the USA, and Russia have already launched their digital currency as the interest and demand for it is increasing eminently hence European commission opines that they will be left behind if they don’t act in the cryptocurrency matter. European Union Members such as France and Germany have suggested European Central Bank speed up efforts in this direction.
The executive arm of the European Union i.e., the European Commission has announced that it will draft a new bill by early 2023 to establish legal grounds or legal foundation for the ongoing work of the European Central Bank regarding digital Euro. European Commission wants to take public opinion and wants to adopt centralized digital currency.
Mairead Mc Guinness, European Union Commissioner for Financial services announced the legislative plan at the fintech conference “our goal Is to table legislation in early 2023. A targeted legislative consultation in the coming weeks.” The European Commission is planning to have a public consultation about digital currency as Europeans are deeply concerned about their financial privacy.
After public consultation, The European Commission should discuss with governments and legislative members states before it becomes law. As Europe wants to adopt Centralized Bank for Digital Currency European Central Bank (ECB) will govern the digital Euro. European Central Bank will determine the worth of virtual currency and digital Euro.
The ECB said “the digital Euro will still be a Euro; like banknotes but digital” the bank says it would be an electric form of money issued by ECB and accessible to all citizens and firms. The final decision about the digital currency will be made by the governing council of the European Central Bank. The European Commission is working on the prototype digital currency and wants to adopt the centralised digital currency just like other countries. The European Commission declared that the virtual digital currency may be launched by 2025.
To conclude, a bill on digital currency is the need of the hour in Europe as the other countries are already ahead of Europe in the digital currency race. Recently India drafted a bill to regulate the ordinary digital currency, USA, Canada and many other developing and developed nations have declared digital currency as legal so given the growing demand for digital currency, the decision of Europe to launch a digital euro is the apt Decision.
Tags : #digitalcurrency #europeancommission #euro #europeancentralbank #billondigitaleuro #cryptocurrency #centralizeddigitalcurrency #decentralizedcurrency