On June 28, 2023, European Commission announced its potential digital euro-based legislative plan. The step is expected to convert digital euro as a mainstream form of payment, as stated by Cointelegraph.
According to Cointelegraph, the proposal comprises digital euro-backed facilities, privacy protection and offline payments. Using a different proposition, the commission advised banks, insurers and funds to distribute customer data with fintech companies for compensation. From what it’s understood, this initiative can ensure real-time entry to customer-based data.
Based on Cointelegraph’s data, the commission intends to unfold the payments market handled by banks. Reportedly, the proposal takes into account user privacy and data safekeeping, along with reduction of problems such as money laundering and terrorist financing. Sources suggest that European Central Bank (ECB) has taken this initiative into account to keep cash within the payments structure.
“We look forward to continuing working together with other European Union institutions towards a digital euro to ensure our currency is fit for the digital age,” Christine Lagarde, president, ECB, said.
Moreover, Cointelegraph noted that the project’s investigation segment will conclude in October, 2023. Post that phase, ECB will go ahead with additional development and testing.
(With insights from Cointelegraph)