LONDON : The European Union is due on Wednesday to publish draft rules that give legal underpinnings for a digital euro, if the European Central Bank decided to issue one in coming years.Central banks across the world, from China and Japan to Brazil, Britain and Canada are looking into digital versions of
LONDON : The European Union is due on Wednesday to publish draft rules that give legal underpinnings for a digital euro, if the European Central Bank decided to issue one in coming years.
"This puts at stake the desirable balance between central bank money and private digital means of payment," according to a draft of the European Commission proposal seen by Reuters. The EU draft proposal, which could see changes before publication, says that the benefits of a digital euro would outweigh the costs and that the cost of not issuing one could potentially be very large.
It would support a stronger, faster and more competitive retail payments market, have a high level of privacy, but not be"programmable", meaning its use is limited to specific goods or services, the proposal said.Credit rating agency Moody's said in May that a digital euro would reduce Europe's dependency on non-EU payment companies such as U.S. duo Mastercard and Visa, long a strategic wish for EU policymakers.
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