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The European Central Bank (ECB) is quite happy with the European Commission\u2019s legislative proposals for the digital euro. ECB executive board member Fabio Panetta told the European Parliament\u2019s Committee on Economic and Monetary Affairs in a speech on Sept. 4 that the proposals \u201cput Europe at the forefront of advanced economies\u201d in central bank digital currency (CBDC) development, potentially heading off private dominance of the financial sector and the ills that implies.<\/p>\n
The European Commission (EC)\u00a0made its proposals public on June 28. Panetta, a critic of cryptocurrency, called the EC proposals for the euro CBDC \u201ca new paradigm for preserving monetary sovereignty\u201d that would ensure Europeans always have access to a public payment option, whether it was cash or digital, even as \u201cclosed-loop solutions are becoming increasingly prevalent\u201d in private payment services. Panetta compared private payment systems to private messaging, where users are pressured to join the most popular systems.<\/p>\n
\nA digital euro would be a new form of central bank money, says Executive Board member Fabio Panetta. It is now up to legislators to ensure it would replicate key characteristics of cash in the digital sphere, particularly its privacyhttps:\/\/t.co\/nQJzYylwpV<\/p>\n