Digital Euro Proposal from the European Parliament

The European Parliament recommended that the research for the digital euro continue, not to be launched yet.

The most discussed topic of the blockchain industry by governments these days is CBDCs. The steps to be taken on the central bank digital currency (CBDC) are a matter of curiosity.

European Parliament Recommends Continued Research for Digital Euro

A report released by the European Parliament addressed the issue of central bank digital currency (CBDC). The report gives clues about the highly anticipated regulations and the digital euro in Europe.

Parliament recommends continuing research on the digital euro, not launching it yet.

The report was prepared by economist Ignazio Angeloni. The report examined ten issues that the digital euro could face. Angeloni stated that the digital euro will put the European Central Bank (ECB) in a position to compete with commercial banks, but in cooperation with banks it can provide front-end services to digital euro users. However, he warned that the introduction of the digital euro could harm the banking system.

One of Angeloni’s recommendations is that digital euro interest rates should be managed separately from cash interest rates and should not encourage arbitrage transactions. Angeloni suggested that the ECB should continue research and start the testing phase in October, but the digital euro should not be launched. The European Central Bank (ECB) will decide on CBDC research in October.