E-003003/2021
Answer given by Executive Vice-President Dombrovskis on behalf of the European Commission
(11.8.2021)
The European Central Bank’s (ECB’s) Report on a digital euro, published in October 2020, set out the principles and requirements for a possible introduction of a digital euro. In its digital finance strategy and its retail payment strategy1, the Commission supported the exploration of the central bank digital currency and, in this spirit, welcomed the ECB’s report and the subsequent public consultation.
Since then, the ECB has carried out further analysis, sought input from citizens and professionals, and conducted some experiments, with encouraging results. The Commission has been associated with this work at technical level.
A decision on the eventual issuance of the digital euro and especially its design, including on potential interest payment and limitations on the amount held can only be made after thorough analyses, the involvement of all relevant institutions and further consultations with the European people and businesses in line with the EU legal framework.
On 14 July, the Governing Council of the ECB decided2 to start its investigation phase on the digital euro, which will last two years. The aim is to address key issues regarding design and distribution in a way that a digital euro could meet the needs of Europeans while at the same time help to prevent illicit activities and avoid any undesirable impact on financial stability and monetary policy. The investigation phase will not prejudge any future decision on the possible issuance of a digital euro. It will shed light on the required changes to the EU legislative framework, to be discussed with and decided by the co-legislators.
The Commission will be closely involved in this work and is available to engage with the Parliament and other European policymakers throughout the process.
1 https://ec.europa.eu/info/publications/200924-digital-finance-proposals_en
2 https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.pr210714~d99198ea23.en.html
© European Union, 2021 – EP
Source: Answer to a written question – Development and introduction of the digital euro – E-003003/2021(ASW)