Legislation for European CBDC will be proposed in 2023

Reports confirmed that the EU is working on the bill for its upcoming Central Bank Digital Currency (CBDCs) issuance. 

Blockchain adoption through the Central Bank Digital Currency (CBDCs), to advance the traditional payment system, is increasing rapidly. Even those countries which are less adaptive to the technology are also planning to go with CBDCs because they know very well that it is a future where people will feel full faith in the use case of online payment system. The European Union is also in this race of blockchain technology adoption but they are taking steps slowly to remain away from any kind of possible risk associated with it. 

On 9 February, Politico published a report on the next movement by the EU commission on the CBDC (digital Euro) adoption.

According to the report, Mairead McGuinness, EC finance chief, officially revealed that the EU will release its bill on Digital Euro in the initial months of 2023 but formally consultation-based legislation will come in the next few weeks. 

“Our goal is to table legislation in early 2023…().A targeted legislative consultation in the coming weeks.”

Reportedly, the European Central Bank (ECB) is already working on the development & testing of a prototype of Digital Euro. And it is expected that the ECB will introduce the final prototype at the end of 2023. 

If all things will happen smoothly in 2023 then the digital Euro will go through approval from Eurozone governors. And after that Digital Euro will enter real-life use cases in 2025. 

In November of last year, Fabio Panetta, ECB Executive Board member, hinted that increasing development works on the CBDCs may pose risk to the Euro, so there is a global pressure to work on Digital Euro. 

“If we don’t satisfy this demand, then others will do it.”

In the present time, Almost every Central Bank are working on research and development of Central Bank Digital Currency (CBDCs). According to available data, more than 90 countries are working on development and more than 10 countries are in the rollout phase, where China is standing at the top. 

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