The EU will have a digital euro certificate on the tables in early 2023

• The EU CFO announced the presentation of a digital euro certificate for early 2023.
• The European Central Bank supported the step with the establishment of increased demand, shorter transaction times and less use of cash.

As early as 2023, the European Commission (EK) expects the European Parliament to submit a draft law for a digital euro. EU CFO MAIREAD McGuiness has officially announced the decision of the European Union (EU), according to the Journalismhaus, to introduce a digital central bank currency (CBDC) politically .

Our goal is to submit laws at the beginning of 2023 ", McGuiness announced at a FinTech conference on Wednesday and added that a" targeted legislative consultation "would be expected in the coming weeks.

The European Central Bank (ECB) has already drawn designs and systems of the CBDC and is experimenting with it. A digital euro prototype is now expected for the end of 2023. The complete implementation of the digital currency requires a seal of approval of the governors of the euro zone. The latter are leading in 19 of the 27 EU member states. Only the 19 countries have the euro as an official currency. If the currency passes this approval phase, it will be ready for output by 2025.

EU urges the digital euro

in October 2021 110 of the 195 countries in the world CBDCs explored, as a report by the International Monetary Fund (IMF) shows. This increased interest is attributed to the growing fear that local currencies are undermined by cryptocurrencies. For example, the Kenyan Central Bank recently made public contributions to a digital schilling, while Thailand is implementing a regulatory framework for a future CBDC for retail. The IMF continued to encourage the nations to introduce CBDCs to contain the financial risks related to crypto-assets.

"If we do not satisfy this demand, others will do it," said ECB directorate member Fabio Panetta in mid-November when he campaigned for a digital euro.

In addition, the examinations of the ECB from last year indicated that a CBDC would help shorten to shorten transaction times and to reduce the handling of physical cash.

Acceptance and rejection of CBDC

But even in view of these obvious advantages, CBDCs continue to encounter increasing resistance to the public. Studies both of the British Economic Committee and the German Central Bank show that the majority of respondents are skeptical about the advantages mentioned. Most of them also fear that they enable further state surveillance through a state -supported digital euro.

in particular China and the Bahamas were among the first countries worldwide to introduce CBDCs in 2019 and 2020. China's digital Yuan is currently the most progressive in the world because the nation has taken significant steps towards tests and introduction of it.