The Eurogroup reaffirmed its support for digital euro research but underlined that some of the design and application features under consideration would necessitate political decisions.
Following a meeting in Brussels, the eurozone finance ministers issued a statement on the launch of the digital euro. According to the report, Eurogroup meets regularly to examine the political elements of the future digital currency. The comment was made on the same day that the European Central Bank (ECB) released a “stock-taking” document describing the status of the digital euro design.
The European Central Bank and European Commission took up the task of keeping the Eurogroup and EU member states updated on progress regarding the construction of the digital euro, which is now under investigation. This was included in the Eurogroup statement, stating:
“The Eurogroup believes that political decisions should be addressed and made at the political level to implement a digital euro and determine its essential characteristics and design choices.”
The committee highlighted the topics it was keeping an eye on, including privacy, the effects of digital currencies on the environment, financial stability, and other relevant matters. Additionally, it indicated an interest in the central bank digital currency proposals of EU members that do not belong to the eurozone.
The group’s participants said they stand ready to participate in these talks.
In addition, they applauded the European Commission’s plan to submit a legislative proposal in the first half of 2023 that would create the digital euro and govern its essential elements, subject to the co-legislators approval.
The ECB Governing Council is scheduled to consider the findings of the investigative phase involving digital currencies in the third quarter of this year. At this point, the proposed amendment is supposed to be presented.
The Eurogroup statement was released a day after an editorial claiming that it did not justify the expense and risk of forming CBDCs were published in the Financial Times by a former Bank of England adviser.