On Wednesday, the European Parliament held a plenary debate on the issue of a digital euro. It was the first such discussion at the legislative level, and it reflected the range of opinions among European lawmakers on the matter of central bank digital currencies (CBDCs). The European Central Bank (ECB) has presented the digital euro as a solution to address future integrity, resilience, and integration challenges, but Members of Parliament (MPs) expressed concerns about privacy, state control, and the role of banks.
Some MPs argued that a CBDC could benefit the European economy significantly. For example, MP Tang (Netherlands -S&D) claimed that the digital euro “makes absolute sense” because it could encourage banks to let customers benefit from interest rate hikes if allowed to compete with deposits.
Similarly, MP Hohlmeier (Germany -PPE) described the digital euro as a “meaningful opportunity” and was broadly supportive of both a wholesale and retail option, although she admitted that the former is likely “easier and quicker.” She highlighted interoperability and cross-border payment features and pleaded that the regulatory framework be flexible enough to support future innovation.
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