{"id":15728,"date":"2025-09-05T10:56:32","date_gmt":"2025-09-05T08:56:32","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=15728"},"modified":"2025-09-05T10:56:32","modified_gmt":"2025-09-05T08:56:32","slug":"ecb-advocates-for-digital-euro-amid-lawmaker-hesitation","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/09\/05\/ecb-advocates-for-digital-euro-amid-lawmaker-hesitation\/","title":{"rendered":"ECB Advocates for Digital Euro Amid Lawmaker Hesitation"},"content":{"rendered":"

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The European Central Bank (ECB) intensified its efforts to launch a digital euro, facing resistance from EU legislators regarding privacy safeguards and possible hazards to commercial banks.<\/p>\n

ECB executive Piero Cipollone informed<\/a> a parliamentary economic committee on Thursday that a digital euro<\/a> \u201cwill guarantee that all Europeans can transact at all times with a freely available, universally accepted digital mode of payment, even amidst significant disruptions.\u201d<\/p>\n

Some members of parliament expressed concerns that the digital currency would fail to safeguard user privacy, and that providing accounts supported by the central bank could undermine the private sector.<\/p>\n

Legislation concerning the central bank digital currency (CBDC<\/a>) has been under consideration by the European Parliament since 2023, and has encountered delays due to political apprehensions and the approaching 2024 elections.<\/p>\n

Digital euro viewed as backup during crisis<\/h2>\n

Cipollone remarked that the foundation of the bloc\u2019s digital payment systems<\/a> relies on non-EU providers, which could restrict the \u201cability to respond quickly and autonomously \u2014 particularly during crises.\u201d<\/p>\n

He proposed the digital euro as a backup in instances of cyberattacks or network failures, and mentioned US initiatives to promote dollar-pegged stablecoins.<\/p>\n

Source: <\/em>ECB<\/em><\/a><\/figcaption><\/figure>\n

Cipollone stated that a digital euro would \u201csupplement physical cash, which is crucial for resilience and inclusion,\u201d but also noted that digital transactions are now \u201cvital to everyday life,\u201d which the government must guarantee.<\/p>\n

Legislators express concerns over privacy and risks to banks<\/h2>\n

Some legislators articulated worries regarding the privacy repercussions of a digital euro and the danger of EU citizens opting to bank with the ECB instead of commercial banks, viewing it as a more secure alternative.<\/p>\n

Regarding privacy, Cipollone asserted that the central bank \u201cwill not have any information about either the payer or the payee\u201d and that an offline variant of the digital currency \u201cwill be just as effective as cash in maintaining the privacy of individuals.\u201d<\/p>\n

Pierre Pimpie of the right-leaning Eurosceptic Patriots for Europe faction claimed that \u201caccounts in private banks could be depleted\u201d due to a digital euro and criticized the ECB for having authority over establishing a limit on user accounts, which he contended the bank could modify in a crisis.<\/p>\n

Cipollone clarified that the central bank\u2019s limit would be established \u201cbased on thorough analysis\u201d and mentioned that if businesses and affluent individuals \u201cperceive a crisis in Europe, it will take them mere moments to acquire stablecoins denominated in an alternative currency.\u201d<\/p>\n

Related: <\/strong><\/em>ECB president urges addressing risks from non-EU stablecoins<\/strong><\/em><\/a><\/p>\n

\u201cAt that juncture, the digital euro would be the least of our concerns,\u201d he added.<\/p>\n

ECB targets 2026 legislation, rollout by 2029<\/h2>\n

Cipollone indicated that the ECB was proceeding under the assumption that digital euro legislation would be finalized by the second quarter of 2026.<\/p>\n

Three EU institutions must approve the digital euro, which include the parliament, the European Commission, and the European Council. Discussions among them could take several months.<\/p>\n

Once the law is enacted, which could be as delayed as mid-2026, the ECB is responsible for developing and testing the digital currency\u2019s infrastructure, a process that might require up to three years, potentially leading to a launch around 2029 if no setbacks occur.<\/p>\n

Magazine: <\/strong><\/em>Bitcoin is \u2018amusing internet money\u2019 during a crisis: Tezos co-founder<\/strong><\/em><\/a><\/p>\n