German lawmaker Stefan Berger has been tapped to lead new legislation to support the development of a digital euro. The center-right MEP has already shepherded the EU’s Markets in Crypto Assets regulation through the Parliament, and will now take a similar role on the central bank digital currency (CBDC). Having your own digital currency makes the EU more independent of non-EU countries and is part of the digital age, Berger said. However, the project will only succeed if you can trust the digital euro just as much as you can trust cash.
The European Central Bank has not yet taken a formal decision whether to issue the CBDC, but has invested significant resources in technical planning for it. The European Parliament, alongside EU national governments, will have to agree on laws to underpin the currency in areas such as data protection. Berger will propose amendments to the draft law that other lawmakers can amend and vote on. In a later phase, he will lead negotiations with the Council to thrash out a unified version of the text.
Despite Berger’s relatively bullish tone, many members of the European Parliament have proved skeptical over the benefits of a digital euro. Dutch MEP Michiel Hoogeveen, who will lead negotiations for the European Conservatives and Reformists political grouping, said he opposed the plans. The digital euro is a solution looking for a problem and potentially only causes problems, Hoogeveen said. Commission officials have said the CBDC is needed to stimulate innovation amid geopolitical tensions, and have proposed that it should be usable offline in a way similar to cash.