The European Union (EU) plans to impose restrictions on the use of the European Central Bank (ECB) digital euro.
According to a draft proposal seen by Bloomberg, the ECB still has to decide on the tools necessary to ensure financial stability.
ECB to Decide for Financial Stability
The EU is putting pressure on the ECB to impose a restriction on the use of the digital euro. However, the ECB must make a decision to ensure financial stability. A draft proposal for the decision reached by Bloomberg is currently on the ECB’s agenda.
The draft proposal states that “The use of the digital euro as a store of value may be subject to limits, in order to ensure the stability of the financial system, the availability of credit and the transmission of monetary policy.” Governments in the eurozone are playing an active role in assessing the characteristics needed to launch the digital currency and ensure stability.
The draft text states that the digital euro will have legal tender status and its adoption will be mandatory. However, there will be some exceptions that do not accept digital payments, such as micro-businesses and non-profits. It will not be mandatory to accept digital currency for personal or household activities or if other payment methods have been previously agreed.
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