Yesterday the European Parliament held a full plenary vote on the digital euro bill, approving the start of trilogue negotiations with the Council of the EU, one of the later steps in the legislative process. The plenary vote was not a routine formality. The Patriots for Europe (PfE), European Conservatives and Reformists (ECR) and Europe of Sovereign Nations (ESN) groups challenged the 23 June decision by the ECON committee to open interinstitutional talks, forcing the matter to a plenary vote. The vote to proceed with negotiations succeeded with 416 votes in favor, 169 against and 22 abstentions. A first round of negotiations with the Irish Presidency of the Council is expected shortly.
While the majority of those opposing were from right of center parties such as the PfE, ,ECR and ESN, there were some notable exceptions explored later.
The bill supports both an online and offline version of the CBDC, which was in doubt for a while as the rapporteur proposed an offline version only, a path that supports enhanced privacy. Many have raised concerns that the online version competes with private sector initiatives such as the bank backed Wero Wallet.
Other features include the long discussed caps on holdings and a requirement for most businesses to accept the digital euro. Certain smaller entities that don’t otherwise accept digital payments will be exempted from the requirement. Basic functionality would be free, but added value services could attract charges. There will also be protections to preserve cash as a payment instrument.
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