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<p><strong>The European Commission introduced a proposal to establish the legal framework for a possible digital euro as part of the Single Currency Package.</strong></p> 
<h2 style="text-align: center;" id="introduction">Introduction</h2> 
<p>The European Commission <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3501" target="_blank" rel="noopener">recently announced its proposed legislative plan</a> for a digital euro, aiming to establish it as a widely accepted and easily accessible form of payment. This move is intended to open up the payments market currently controlled by banks, Visa, and Mastercard, fostering competition and promoting alternative services provided by fintech companies.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">🇪🇺 With more and more people using digital tools for their daily transactions, the European Commission on Wednesday presented a proposal to initiate a digital euro.<a href="https://t.co/kPb0XavRle">https://t.co/kPb0XavRle</a></p> 
 <p>— euronews (@euronews) <a href="https://twitter.com/euronews/status/1674053832031055873?ref_src=twsrc%5Etfw">June 28, 2023</a></p>
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<h2 style="text-align: center;" id="ensuring-accessibility-and-privacy-protection">Ensuring Accessibility and Privacy Protection</h2> 
<p>To prevent exclusion and ensure accessibility, the proposal emphasizes the availability of digital euros through banks upon request. It aims to provide easy access to digital euros, thereby preventing individuals from being left behind. The legislation also includes provisions for offering free basic digital euro services to individuals. Additionally, privacy protection is a key focus, with measures in place to safeguard user data.</p> 
<h2 style="text-align: center;" id="encouraging-data-sharing-and-advancing-digital-finance">Encouraging Data Sharing and Advancing Digital Finance</h2> 
<p>The commission has proposed a separate initiative wherein banks, insurers, and funds would share customer data with fintech companies in exchange for compensation. This proposal aims to promote the advancement of digital finance by enabling real-time access to customer data for participating companies upon request. Such data sharing is expected to drive innovation and enhance the services provided by fintech companies.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/euro?src=hash&amp;ref_src=twsrc%5Etfw">#euro</a> l And here it is, the <a href="https://twitter.com/EU_Commission?ref_src=twsrc%5Etfw">@EU_Commission</a> log-awaited single currency package including:<br> – a proposal for a digital euro<br> – a proposal on a legal tender of euro cash<a href="https://t.co/SckQz2uciX">https://t.co/SckQz2uciX</a> <a href="https://t.co/U9a3aHAJ0q">pic.twitter.com/U9a3aHAJ0q</a></p> 
 <p>— Émilie Vanderhulst 🌻 🇧🇪🇪🇺💉💉💉💉 (@BirdingBrussels) <a href="https://twitter.com/BirdingBrussels/status/1674003692477898753?ref_src=twsrc%5Etfw">June 28, 2023</a></p>
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<h2 style="text-align: center;" id="fostering-competition-and-prioritizing-user-privacy">Fostering Competition and Prioritizing User Privacy</h2> 
<p>The commission’s proposal seeks to foster competition in the payments market, which is currently dominated by traditional banks and major card networks like Visa and Mastercard. By encouraging the provision of alternative services by fintech companies, the legislation aims to open up the market and provide consumers with more choices. Additionally, the proposal prioritizes user privacy and data protection, addressing concerns related to money laundering and terrorist financing.</p> 
<h2 style="text-align: center;" id="support-from-the-european-central-bank">Support from the European Central Bank</h2> 
<p>The European Central Bank (ECB) <a href="https://walletinvestor.com/magazinadmin/the-european-central-bank-concludes-prototyping-for-digital-euro/" target="_blank" rel="noopener">has expressed its support</a> for the commission’s proposal, particularly in safeguarding the role of cash in the payments system. ECB President Christine Lagarde has welcomed the initiative and looks forward to collaborating with other European Union institutions to ensure the digital euro aligns with the needs of the digital age.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">🚀 Breaking News! Watch as ECB President Christine Lagarde spills the beans on the eagerly anticipated launch of the Digital Euro! She shares key insights and timelines for the introduction of this game-changing Central Bank Digital Currency (CBDC). <a href="https://twitter.com/hashtag/ECB?src=hash&amp;ref_src=twsrc%5Etfw">#ECB</a> <a href="https://twitter.com/hashtag/DigitalEuro?src=hash&amp;ref_src=twsrc%5Etfw">#DigitalEuro</a> <a href="https://twitter.com/hashtag/CBDC?src=hash&amp;ref_src=twsrc%5Etfw">#CBDC</a>… <a href="https://t.co/bVdjdRWSp5">pic.twitter.com/bVdjdRWSp5</a></p> 
 <p>— CRYPT⭕️ ❌ CR⭕️WS (@CryptoCrows) <a href="https://twitter.com/CryptoCrows/status/1674125493887459328?ref_src=twsrc%5Etfw">June 28, 2023</a></p>
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<h2 style="text-align: center;" id="next-steps-and-future-development">Next Steps and Future Development</h2> 
<p>The investigation phase of the project is expected to be completed by October 2023. Following this, the ECB will proceed with further development and testing of technical solutions and business arrangements. The evaluation of the Governing Council’s decision to issue a digital euro will occur after the adoption of the legislative act.</p> 
<h2 style="text-align: center;" id="conclusion">Conclusion</h2> 
<p>The European Commission’s proposal for a digital euro aims to establish it as a widely accepted and easily accessible form of payment. By fostering competition in the payments market, prioritizing user privacy, and promoting data sharing, the commission seeks to ensure a more inclusive and innovative financial ecosystem. The support from the European Central Bank highlights the importance of this initiative in adapting the euro to the digital age. As the project progresses, the focus will be on developing and testing technical solutions, ultimately leading to a decision on the issuance of a digital euro.</p>

The European Commission is Working on a Legal Framework for the Digital Euro

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