Digital euro on EU priorities list before 2024 elections

Quick Take

  • A central bank digital currency is a legislative priority for the European Union in the coming two years. 
  • A digital euro proposal could come in the second quarter of 2023, a Commission spokesperson confirmed.
  • Anti-money laundering provisions implicating the crypto sector are also on the priorities list.

Presidents of the European Parliament, Council and Commission have signed a joint agreement outlining priorities before the next European elections in 2024. On the list of 164 legislations — some are already in negotiations, and others are yet to be put forward — is a central bank digital currency.

The European Commission promised to develop legislation for a digital euro “soon.” A spokesperson confirmed that the Commission plans to put forth a proposal in the second quarter of 2023.

The European Union’s anti-money laundering package also featured on the list of priorities. The AML regulation is in negotiations between policymakers in the European Parliament. Discussions have brought decentralized finance, DAOs and NFTs into scope. An EU-wide anti-money laundering authority to oversee provisions, including on crypto firms, is anticipated. 

As for the digital euro, the European Central Bank is currently working on a prototype with a selection of partners, including the contested Amazon. The design phase will wrap up in March 2023, followed by a decision on whether to implement a euro CBDC anticipated in October.

ECB executives say that a digital euro will likely have limited individual transactions and caps on store-of-value.

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