European Commission and ECB Unite to Discuss Advancement on the Digital Euro
The European Commission will work with the European Central Bank (ECB) to examine potential challenges in issuing the euro digitally. The collaboration targets to open the door to wealth development later this year. The two institutions joint statement suggests that the focus is on reviewing various political, legal, and technical issues related to the possibility of a digital euro. The currency will complement private sector money and payment solutions. Besides, the two EU institutions recognize that the spread of the digital euro can face political obstacles. Privacy Remains Major Concern Before announcing the partnership, the ECB completed a public consultation on the digital euro; talks began on 12 October 2020 with over 8,000 responses. The multitude of responses to the survey indicates that European citizens, businesses, and scientists are passionate about shaping a digital euro‘s vision. All stakeholders’ views are critical to them as they assess the need, feasibility, risks, and benefits of the digital euro. Although the ECB will publish the feedback later, the report suggests that confidentiality is a significant concern. Another essential matter concerns the security and impact of pan-European assets. ECB President Christine Lagarde has indicated that the digital euro will be introduced in previous engagements in the next five years. At