The Eurogroup reaffirmed its support for research on the digital euro, but stressed that some of the design and implementation features being considered will require political decisions.
Following a meeting in Brussels, eurozone finance ministers issued a statement on the launch of the digital euro. According to the report, the Eurogroup meets regularly to examine the political elements of the future digital currency. The comment was made on the same day that the European Central Bank (ECB) published an “inventory” document outlining the state of the digital euro design.
The European Central Bank and the European Commission have taken it upon themselves to keep the Eurogroup and EU member states informed about progress in building the digital euro, which is now under investigation. This was included in the Eurogroup statement, stating:
“The Eurogroup believes that political decisions need to be addressed and taken at the political level to implement a digital euro and determine its essential features and design options.”
The committee highlighted the issues it was keeping an eye on, including privacy, the effects of digital currencies on the environment, financial stability, and other relevant issues. In addition, he indicated an interest in the central bank digital currency proposals of non-eurozone EU members.
Group participants said they are ready to participate in these conversations.
In addition, they applauded the European Commission’s plan to present a legislative proposal in the first half of 2023 that would create the digital euro and govern its essential elements, subject to the approval of the co-legislators.
The ECB Governing Council is scheduled to consider findings from the research phase involving digital currencies in the third quarter of this year. At this point, the proposed amendment is supposed to be presented.
The Eurogroup statement was released a day after a former Bank of England adviser published an editorial in the Financial Times claiming it did not justify the expense and risk of forming CBDCs.
