EU Mulls Digital Euro Bill, Metaverse Policy

According to a document posted on the European Commission's website on January 23rd, the European Commission will publish a bill to support a digital euro as well as its strategy on virtual worlds in May.

While the European Central Bank has yet to decide whether to issue a central bank digital currency (CBDC), the commission has indicated that new laws may be required to establish its legal tender status and anti-money laundering rules.

"Our legislation will be the framework for a digital euro," EU financial services commissioner Mairead McGuinness told lawmakers on the Economic and Monetary Affairs Committee on January 24th. “It will be negligent if Europe did nothing now, but at some point in five or 10 years had to urgently rush through something.”

The commission plans to publish the bill on May 24. The parliament and EU governments must "look at the finer points around the use cases of a digital euro" and "the technology to be used," she said.

Lawmakers, who would have to approve any of McGuinness' proposals, appear sceptical of the initiative's worth.

"From a consumer standpoint, what can I do with a digital euro that I cannot do with current payment systems?" Markus Ferber, the economic spokesperson for the parliament's largest political grouping, asked McGuinness, echoing others' concerns about the CBDC's failure to capitalise on blockchain potential.

(With inputs from Shikha Singh)

8 days ago