European Commission legislative proposal
European Commission digital euro legislative proposal
AI summary
A proposal is not yet law; it must complete the EU legislative process.
It links digital euro design choices to legal obligations.
Who this applies to: Payment and banking institutions, merchant acquirers, wallet providers, and policy and legal teams
Implementation status: European Commission legislative proposal
- Distinguish the proposal from the enacted law.
- Track the final wording on legal tender and acceptance duties.
- Assess how intermediary roles constrain product design.
Contents
Details
Description
The European Commission is putting forward two proposals within a ‘single currency package’ to ensure that individuals and businesses can continue to access and pay with euro banknotes and coins across the euro area, and to set out a framework for a possible new digital form of the euro that the European Central Bank could choose to issue in the future, as a complement to cash.
The euro continues to be a symbol of Europe’s unity and strength. Across the euro area and beyond, for more than two decades, people and businesses have been accustomed to paying with euro coins and banknotes. While 60% of people surveyed would like to continue to have the option to use cash, an increasing number of people are choosing to pay digitally, using cards and applications issued by banks and other digital and financial firms.
To reflect these trends, the Commission proposes two sets of measures to ensure that people have both payment options available when they want to pay with central bank money – physical and digital euro.The package includes a legislative proposal establishing the legal framework for a possible digital euro as a complement to euro banknotes and coins.
It will ensure that people and businesses have an additional choice – on top of current private options – that allows them to pay digitally with a widely accepted, cheap, secure and resilient form of public money in the euro area.If the proposal to establish the legal framework for the digital euro is adopted by the European Parliament and Council, it will ultimately be for the European Central Bank to decide if and when to issue the digital euro.
It also includes a legislative proposal on the legal tender of euro cash to safeguard the role of cash, ensure it is widely accepted as a means of payment and remains easily accessible for people and businesses across the euro area.
Press pack
Press release
Frequently asked questions
Factsheet: The euro - Single currency package
Watch the press conference
Legislative proposals and related documents
Timeline of the initiative and stakeholder's feedback
Proposal for a Regulation on the establishment of the digital euro
Proposal for a Regulation on the provision of digital euro services by payment services providers incorporated in Member States whose currency is not the euro
Impact assessment accompanying the proposals
Summary of the impact assessment accompanying the proposals
JRC research update: Potential impact of digital euro on banks' balance sheets and profitability
Related proposal on a legal tender of euro cash
Video
Related links
Digital euro
Files
28 JUNE 2023
Official English source text captured for the public library.