Despite the European Central Bank (ECB) and European Commission beavering away at the technical details for a digital euro, political decision-makers appear hard to muster much enthusiasm for the central bank digital currency (CBDC). New laws to underpin the CBDC propose answers to questions on privacy, offline use, and distribution, but the positive case for what the CBDC should be there to do is missing, according to politicians. Ireland’s Paschal Donohoe, who chaired euro finance ministers’ talks, said they discussed the importance of developing a compelling and clear narrative regarding what would be the added value of this development. The ECB says the digital euro could become a monetary anchor, ensuring citizens can still get access to state-issued money in a digital era, while others argue it could bypass the unstable commercial banking system altogether. However, an ECB focus group last year found that few in the general public had heard of a digital euro, and skepticism is shared in the European Parliament. Markus Ferber, economic spokesperson for the largest political grouping in the European Parliament’s economic affairs committee, said If we are just duplicating the existing payment infrastructure with the digital euro, I do not see a strong case. Anna Martin of consumers’ organization BEUC said commercial banks hate this project, because it creates competition with their private payment methods. Despite the confusion, Ferber believes a majority in the Parliament will support the digital euro proposal in the end.
European Politicians Struggle to Find Enthusiasm for Digital Euro
