The European Parliamentmeeting in plenary session, approved the regulation that establishes the regulatory basis for the introduction of thedigital euroa new form of electronic money intended to complement cash in Eurozone countries. The initiative represents an important step towards modernization of European payment systemsalthough several operational aspects will still have to be defined before the official launch.
According to current forecasts, the digital euro may come into circulation starting from 2029. The new currency will have legal value and must therefore be accepted as a payment method in countries that use the euro. The goal is to enable citizens to carry out digital transactions without having to resort to traditional payment circuits used by credit and debit cards.
To use the new system it may be necessary a dedicated applicationconceived as a digital wallet in which to store your balance. Through this platform it will be possible to make online purchases, pay in physical stores and transfer money directly between private individuals.
Further details on the adoption of the Digital Euro
The project has been developed by the European institutions over the last few years, but the path towards approval took longer than expected due to the different positions expressed by the political and financial world. After about three years of comparison, the regulation obtained the green light from Parliament.
The digital euro receives support from the political forces of left and part of the European centre-rightwhile the parties belonging to the area of more radical right continue to express strong doubts. Among the main advantages highlighted by supporters are the absence of commissions for consumers, reduced costs for merchants even in transactions carried out between different Eurozone countries and greater autonomy from the international circuits currently used for electronic payments, many of which are owned by US companies.
Those who oppose the project fear that the digital euro could favor a progressive reduction in the use of cash and increase the control over transactions. According to the regulation, however, such fears should be mitigated by specific privacy guarantees.
