ECB Says Digital Euro Is Ready as Decision Shifts to EU Lawmakers

Source: CryptoNewsNet Original Title: ECB Says Digital Euro Is Ready as Decision Shifts to EU Lawmakers Original Link: European Central Bank officials said Thursday the institution is ready to roll out a digital euro after completing technical and preparatory work, confirming at this year’s final press conference that a review of the project is underway, with the European Council and the European Parliament participating.

“We have done our work, we have carried the water, but it’s now for the European Council and certainly later on for the European Parliament to identify whether the Commission proposal is satisfactory, how it can be transformed into a piece of legislation or amended,” ECB President Christine Lagarde said in a statement.

As officials stress that the systems are built and the safeguards defined, attention has shifted to the political process required to authorize issuance.

Designed as a public, widely usable digital currency with legal tender status, the proposed digital euro is intended to support financial stability, monetary sovereignty, privacy, and inclusion, while strengthening Europe’s payments infrastructure.

Its purpose as a retail central digital bank currency is to “ensure that central bank money with the status of legal tender remains available to the general public, while offering a state-of-the-art and cost-efficient payment means,” the proposal reads, adding it could provide “a high level of privacy in digital payments.”

A retail CBDC is a digital form of public money issued by a central bank and backed by the state, with the same legal standing as cash. Unlike stablecoins, it’s a direct claim on the central bank, not a private token backed by reserves or corporate guarantees.

“Our ambition is to make sure that in the digital age, there is a currency that is the anchor of stability for the financial system,” Lagarde said.

Necessity and urgency

In January, European Central Bank executive board member Piero Cipollone stressed the need for a digital euro in response to geopolitical developments affecting monetary policy. Shifts in global crypto policy and discussions around stablecoins added urgency to European discussions about monetary autonomy, with Cipollone saying lawmakers and the broader political world are “becoming more alert” to the conversation.

Notably, some global leaders have taken a hostile stance toward central bank digital currencies, citing concerns about government control over people’s money.

Discussions on the weight of a public digital currency began as early as 2021, when European central bankers warned that failing to issue could leave monetary control to private or foreign payment systems as cash usage declines.

Policymakers have also examined how the digital euro fits alongside public blockchains such as Ethereum and Solana. “The proposed regulation on the digital euro is technology neutral,” an ECB spokesperson previously stated.

Debate has since moved from principle to execution, with European institutions pressing for more apparent timelines around pilots and a possible launch toward the end of the decade.

The IMF has warned that private digital money, including stablecoins, could weaken domestic monetary policy and financial stability.