The potential issuance of fiat currency in digital form has attracted global attention, with various jurisdictions exploring the concept. The EU, US and UK are among those actively considering the implementation of a CBDC.
A leaked draft of a proposed digital euro bill, to be tabled by the European Commission on June 28, reveals several key provisions that aim to shape the future of the European Union. central bank digital currency (CBDC).
draft bill, saw By CoinDesk, key elements such as restrictions on interest and surcharges, availability of offline payments from scratch, and limits on programmability. Specifically, the draft bill confirms the status of the digital euro as legal tender, placing it on an equal footing with traditional fiat currencies. This recognition ensures that shops and businesses must accept the digital euro as a valid means of payment.
According to text seen by CoinDesk, the EU intends to make the digital euro available for both online and offline transactions right from its initial issuance. The regulation aims to ensure a level of privacy equivalent to withdrawing cash from an ATM during offline, face-to-face interactions.
In particular, privacy is emerged As a significant area of public concern around CBDCs, as highlighted by the 2021 survey conducted by the European Central Bank (ECB). Therefore, the leaked draft of the proposed digital euro bill acknowledges these concerns and aims to address them proactively.
While privacy is paramount, the leaked draft acknowledges the importance of regulatory oversight in tackling financial crimes such as money laundering. As per the proposed bill, neither the ECB nor the payment service providers will have access to individual transaction data.
Also, in an effort to preserve the essence of fiat currency and its freely usable nature, the draft law emphasizes that CBDCs “shall not be programmable.” Including the provision that fiat currency is essential Underlines the commitment to preserve the characteristics.
Additionally, the draft law includes provisions to discourage individuals from using digital euro accounts as an alternative to traditional commercial bank savings accounts. These measures are intended to ensure that digital euro holdings do not accrue interest and allow additional controls to be imposed by the ECB.
To encourage the primary use of the digital euro for everyday transactions, Fabio Panetta, a member of the ECB’s executive board, has suggested a cap of around 3,000 euros ($3,250) on individual holdings.
Digital Euro: Navigating Parliamentarians’ Skepticism
The potential issuance of fiat currency in digital form has attracted global attention, with various jurisdictions exploring the concept. The EU, US and UK are among those actively considering the implementation of a CBDC.
Notably, the ECB has operated A detailed evaluation of the CBDC, and a decision on its adoption, is likely later this year. Fabio Panetta stressed that the decision to move forward with a CBDC must be a political one, involving not only central bankers but political considerations as well.
Overall, the introduction of a CBDC in the European Union requires legislation that must be approved by both the European Parliament and the Council of the European Union. However, members of the European Parliament have raised objections regarding CBDCs, and the initiative is unlikely to be rejected outright by the council.
Speaking anonymously on the issue, a senior EU official has indicated that the Council will not produce a joint opinion on the digital euro in the near future.

Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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