EU to introduce bill next year to plan a digital euro
The European Commission announced Wednesday it will propose a bill in early 2023 to introduce a digital euro, according to a report by Politico.
Fast facts
The European Central Bank (ECB) is already experimenting with the digital euro and is expected to begin working on a prototype by the end of next year.
A digital euro is expected to be ready as soon as 2025 if the European Union makes a decision on issuance.
A digital euro would be the European Union’s central bank digital currency (CBDC), which many countries are already beginning to explore, most notably China.
European lawmakers are concerned the rise of other CBDCs, privately-backed cryptocurrencies like formerly Meta-backed Diem and Bitcoin could undermine the demand for their fiat.
“If we don’t satisfy this demand, then others will do it,” ECB Executive Board member Fabio Panetta said in November, advocating for the creation of the digital euro.