ECB is offering EU governments more control over the digital euro

On Friday, the EU finance ministers reached an agreement on the digital euro currency ￰0￱ digital euro is envisioned as an alternative to the dominant Mastercard and Visa payment ￰1￱ wants to increase its independence in defence, finance, and ￰2￱ to this, discussions on the digital currency backed by the EU Central Bank have heated up lately. Furthermore, the European Central Bank is hoping to have the legislation ready ￰3￱ the legislation is ready, it will take another three years to launch the digital ￰4￱ some European countries do already have their own digital currency systems, those aren’t widely accepted across the bloc. “The digital Europe is not just a means of payment, it is also a political statement concerning the sovereignty of Europe and its capacity to handle payment, including on a cross-border basis, with a European infrastructure and solution,” Lagarde said at the press ￰5￱ is offering EU governments more control over the digital euro The ECB has offered to give EU governments more control over key parts of a planned digital euro, seeking to end a year of gridlock and clear the way for an agreement on the ￰6￱ move opened a route toward an agreement on a project that has been stuck for a ￰7￱ shifts a sensitive decision from the central bank toward elected national ￰8￱ the plan, national governments would have the final word on how much digital euro a person can keep in a wallet ￰9￱ step is designed to address a core worry shared by several countries and by the banking ￰10￱ to a previous report by Cryptopolitan , the ECB said that the digital Euro needs to offer continued access to payments across the Eurozone even during severe banking crisis or ￰11￱ ministers are due to take up the idea this week in ￰12￱ said an informal green light is ￰13￱ diplomat said the proposal is “likely to pass.” The ECB, based in Frankfurt, is pushing for a quick ￰14￱ fears that waiting too long will leave Europe behind US-based private payment providers, especially dollar-denominated “stablecoin” stablecoins that have gained traction for cross-border ￰15￱ majority to decide digital Euro limits The question of who gets to take the final decisions on the digital euro’s design has pitted EU capitals against the central bank for ￰16￱ 2024, governments have requested to keep the last say on that ￰17￱ argue that if the threshold is set too high, people could pull large sums out of bank accounts into digital euro wallets, as much as they can withdraw cash from ￰18￱ could potentially put financial stability at ￰19￱ new pitch seeks to split the ￰20￱ years before any issuance, the ECB would open a dialogue with ￰21￱ year before issuance, the ECB would come up with an overall ￰22￱ figure would then require backing by a qualified majority of eurozone ￰23￱ later change to the cap would need an identical reinforced ￰24￱ would give capitals more weight in shaping the ￰25￱ stressed that the use of a reinforced qualified majority has the strongest vote count in EU procedures, and it is ￰26￱ would make it harder to push through a high ceiling without broad backing, and would also apply to any later revision suggested by the ECB after ￰27￱ Council seeks to reach an official compromise on the full digital euro regulation before ￰28￱ legislation also needs the approval of the EU Parliament, which is not expected to come before next year.

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