The finance ministers of the euro zone will debate this Thursday the creation of the digital euro, a virtual version of the single currency that the European Central Bank (ECB) is studying, to be accepted throughout the euro zone.
This Thursday’s debate in the Eurogroup -in which Portugal will be represented by the delegate minister, Fernando Medina- comes at a time when the ECB is carrying out technical work for the creation of this digital euro, and a decision is expected from the Council of Governors. in autumn on the next steps and the technical solution, according to European sources.
Although there is still much to do and decide on the creation of this virtual form of single currency, the truth is that the European Commission wants to move forward with this new availability, at the same time that it intends to safeguard the use of cash, according to a package released this Thursday. by the community executive at the end of June.
As part of this package, the institution then proposed a digital euro that, like cash, would be available as cards or apps, functioning as a digital wallet through which citizens and businesses could pay at any time. and anywhere in the eurozone, both on devices with or without an internet connection.
Banks and other payment service providers across the EU are expected to distribute the digital euro free of charge in the basic version, and merchants across the euro area are expected to accept digital euro payments, with the exception of very small in size. given the cost of the infrastructure.
As with cash, the digital euro would be the responsibility of the ECB, which would decide if and when to issue this virtual version of the single currency, in a project that would require additional technical work by the central bank.
A digital euro will be an electronic form of the single currency accessible to all citizens and businesses, like euro banknotes, but in digital format, which will allow, for example, daily payments.
It will then work as a complement to euro banknotes and coins without replacing them.
A digital currency is a money-like asset that is stored or exchanged through online systems, and in the case of the euro it will be managed by the central bank.
Adopted by 20 Member States of the European Union, the euro has been in circulation for 21 years and is the second most used currency worldwide in global payments.
This Thursday, the euro finance ministers will also debate the budgetary orientation of the euro zone, at a time when it is expected that next year the rules for controlling the deficit and public debt will be resumed, although reformulated.
Source: TSF
