It was assumed that Brussels would try to introduce the digital euro into circulation from the end of June 2023. These plans caused many fears and faced certain opposition both at the level of the EU states and at the level of various trade associations of these countries. On June 28, 2023, the European Commission unveiled plans for the introduction of a digital euro. The document does not contain any dates and real steps for the implementation of the program, rather it is an attempt to dispel fears and pave the way for agreeing on the future introduction of EU digital money.
Brussels explains the need for the introduction of a digital euro by the fact that people are less and less likely to use cash. However, it is cash that is money issued by the European Central Bank (ECB). The money in the accounts is the money of the banks. The European Commission considers it necessary to ensure the access of EU citizens to the money issued by the ECB. This is precisely the need for the introduction of a digital euro.
Most of the document is devoted to removing the fears associated with digital currency. The European Commission assures that:
Cash will not disappear from circulation
60% of Europeans want to save cash. In addition, a number of socially vulnerable groups (primarily the homeless and the poor) are deprived of access to non-cash funds, as banks refuse to open accounts for them. Many, including the elderly, are deprived of access to the Internet, computers and gadgets necessary for cashless payments. The EC promises that ATM networks will be preserved. At the same time, some retail chains are gradually refusing to accept cash.
The digital euro will not be programmable
This means that the EU digital currency can be spent in the same way as regular money, without restrictions on legal ways of spending. The reason for this explanation is that fears about the impossibility of spending digital money on, for example, goods that are harmful to the environment create a powerful opposition to the EC plans for a digital euro. In addition, the EC assures that the rules for controlling transactions with EU digital currency will be the same as those for transactions with conventional money. Governments will not get any new leverage to influence citizens and organizations.
Offline payments will be available from the moment the digital euro is introduced
We are talking about the ability to make payments via phone communication channels (Bluetooth, etc.) without the need to connect to the Internet. This is important for those residents of the EU who do not have the Internet and / or do not know how to use it. In addition, such transfers cannot be traced, their secrecy even exceeds that which is currently available for payments using bank cards.
When will the digital euro be introduced?
The document published by the EC does not contain specific dates. Long-term agreements are ahead at the level of the EU states and various public organizations, commercial associations. Experts suggest that the digital euro will be put into circulation no earlier than 2028.
It is assumed that when the EU digital currency is introduced, separate accounts will need to be opened for it. Determine whether citizens want to have a digital euro, and if so, how much, EU residents will be on their own. Entrepreneurs will be required to accept the digital euro when paying for goods and services.
To have money, including digital money, you need to earn it. Entrepreneurship is a good way to provide for yourself and your family. However, there are obstacles along the way. In order not to be mistaken register for the webinar "Entrepreneurship in the Netherlands".
Publication Date: 20.07.2023
