The European Commission is proposing a digital euro that would be universally recognized and simple to use in an effort to ensure that the euro stays the dominant currency in the digital era.
A new data-sharing plan being proposed by the European Commission would compel banks, insurance companies, and funds to access their customers’ data, and fintech businesses would pay in return.
The plan has received several kinds of responses, with some privacy activists raising worries about the possibility of consumer data being misused.
The proposed new legislation would make it possible for Europeans to pay digitally for free across the eurozone.
The European Commission’s proposal for a digital euro includes provisions for free essential services, strong privacy protections, and the ability to make offline payments. These initiatives are designed to make the digital euro more convenient, inclusive, and secure.
The European Commission’s proposal for a digital euro explicitly prohibits the “programming” of the CBDC to restrict its use for certain goods or services.
Although the digital euro cannot be programmed to restrict its use for certain goods or services, officials clarify that conditional payments, such as monthly utility bills or intricate smart contracts, can still be facilitated using the digital euro as an underlying mechanism.
The European Commission is taking steps to make digital euros a convenient and accessible form of payment for everyone, regardless of their background or financial situation.
The European Commission released a post on June 28 by Fabio Panetta and Valdis Dombrovskis to address concerns about the digital euro and highlight its potential benefits for consumers.
According to the European Commission, the cost of digital payments for small operators might range from 1.5% to 5% of the transaction’s value plus an extra 5–15 euros.
The introduction of a digital euro could shake up the current payment landscape by offering a more affordable and convenient way to pay. This can result in decreased transaction costs for companies, which might then be passed on to customers as cheaper costs.
A digital euro could revolutionize the way we pay, making transactions more efficient and faster. Settlements could be made near-instantaneously, and there would be less need for intermediaries.