EU calls for ideas on CBDC legislation challenges

The European Commission has issued a ‘call for ideas’ to help inform rule makers around the legislative roadblocks of a digital euro.

The Commission said, “For a digital euro to be used as the single currency, concurrently with euro banknotes and coins, it would require a Regulation of the co-legislator, upon a proposal by the Commission, on the basis of Article 133 TFUE. For the regulation, an impact assessment will be prepared, which will be supported by consultations carried out by both the Commission and the ECB.”

EU legislators will be looking at a number of key issues in the coming selection of ideas. These include users’ needs and expectations for a digital euro, the digital euro’s role for the EU’s retail payments and the digital economy and making the digital euro available for retail use while continuing to safeguard the legal tender status of euro cash.

The Commission will also be looking at the digital euro’s impact on the financial sector and financial stability, international payments with a digital euro, the application of AML and CTF rules and the aspects of privacy and data protection.

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