There is a series of laws that was proposed by the European Commission, these laws would protect the function of currency in the financial system and will pave the way for the adoption of digital euro. Physical cash may be a problem sometimes because of malfunctions or shutdowns of ATM and banks, and that is the reason why the European Commission proposed this project. Surely, cash is widely accepted and some stores even do not accept bank transfers, just cash.
The Commission is well aware that some citizens and even some industries have encountered problems regarding the accessibility of cash.
People, including businessmen, organizations and companies are accustomed on using euro coins and banknotes for their payment methods. However, some people say that they would prefer to pay cash even in the future but a lot of individuals are also accepting digital payment methods like bank transfers, applications and even cryptocurrency. These people choose to opt on utilizing technology or digital payment methods, because it is hassle free!
Since not all individuals accepts PHYSICAL euro, and not all individuals accepts DIGITAL euro, the European Commission proposed two sets of measures that will ensure every citizen to have access on both physical and digital euro. They proposed a legislative that creates the legal foundation for potential digital euros as an addition to euro banknotes. This adds to the options that will guarantee every people to have access or to have a second option that enables them to make digital payments, an affordable, secured, resilient and fast form of public money in the euro area. Whether and when the proposal to establish the legal framework for the digital euro is approved by the European Parliament and Council, it will ultimately be decided by the European Central Bank.
This project will not just affect the European countries. With the launch of the digital euro, consumers would have more options than they do now and this will have a stronger impact for international transactions.
Security and protection is also one of the top priorities, the EU Commission guarantees that the digital euro is widely accepted as a form of payment and it is freely accessible for businessman, enterprises and companies throughout the euro area, together with a legislative proposal on the legal tender status of the euro currency. It can also serve as a strong foundation for future innovations.
If this framework was approved by the European Parliament and Council, it will surely establish a widely useable and accessible digital money.
To present the best out of everything, the ECB needs to do a lot of more technical work on this endeavor and whether and when to introduce the digital euro is in their hands.
