EU prepares for digital euro

The EU Commission has announced its proposed regulation to create a legal framework for the use of the digital euro. The aim of the regulation is to make the digital euro a secure and official currency that is widely accepted in the Eurozone. According to the proposal, the digital euro will be a central bank digital currency issued by the European Central Bank (ECB) and open to public use. The digital euro will be used as a digital version of the cash euro. Unlike crypto assets, the digital euro will be backed by the ECB and, as with the cash euro, every digital euro held will be directly supported by the ECB. The ECB will guarantee that the digital euro can be exchanged for cash euros while maintaining its reliability, value, stability and reputation. The digital euro will offer an alternative payment solution across Europe and individuals and businesses will be able to make payments with the digital euro in addition to existing options. The digital euro will become a cheap, secure and official currency that is widely accepted in the Eurozone. This money can be used with existing national and international payment instruments such as cards or applications and can also function as a wallet. Individuals and businesses will be able to make payments with digital euros anytime and anywhere in the euro area, and they will be able to use them for internet payments, and they will be able to make payments from device to device in places where there is no internet connection. The digital euro will offer the same level of data privacy as existing digital payment instruments. It will provide a high level of privacy and data protection for users in payments made without an internet connection. Digital payments will be made without sharing personal data, and the digital euro will be accessible through banks and other payment service providers in the EU. Free to individuals Basic digital euro services will be provided to individuals free of charge. In order to increase financial access, people without a bank account will be able to obtain digital euros by opening an account at a post office or public institution. All significant commercial enterprises in the euro area will be required to accept the digital euro. Since the new infrastructure costs will be high in the first phase, there will be a temporary exemption for very small merchants. The digital euro will provide innovative solutions to banks' customers while also contributing to the institution's monetary sovereignty. The EU Commission's legislative proposal regulating the basic elements of the digital euro has been submitted to the European Parliament (EP) and member states for approval after this stage. The ECB will take the final decision on when the digital euro will be issued. The ECB is currently working with the national central banks of the eurozone to investigate whether a digital euro could be launched. The ECB is expected to complete the research phase on the digital euro, which began two years ago, in October.