European Parliament approves opening negotiations on digital euro
Brussels, September 9 (Hibya) - The European Parliament approved the opening of negotiations with the Council on the creation of a digital euro by 416 votes in favor, 169 against and 22 abstentions. The new digital currency is expected to be usable both online and offline, include privacy safeguards and provide basic services free of charge.
The European Parliament plenary backed the opening of negotiations with the Council of the European Union on the proposal for a digital euro.
In the vote on creating the digital euro, 416 members voted in favor, 169 against and 22 abstained. A proposal allowing payment service providers established in EU member states that do not use the euro to offer digital euro services was also approved by a show of hands.
According to Parliament's negotiating position, the digital euro would be a new form of electronic money issued by the European Central Bank and could be used both online and offline.
Privacy safeguards are planned as part of the digital euro, with transactions to be verified without revealing personal data and data to be processed only to the extent strictly necessary for the functioning of the system.
Most businesses would be required to accept the digital euro. Exceptions would apply to self-employed people and small and micro-enterprises that do not accept other digital payment methods.
Basic services such as opening an account, holding and managing funds, and access to at least one payment instrument are expected to be free of charge. A limit would also be placed on the amount of digital euros individuals can hold in order to protect the financial system.
Banks and payment service providers in EU countries that do not use the euro are expected to be allowed to distribute the digital euro.
Parliament's position also states that euro area countries should preserve access to cash, businesses should not be allowed to ban cash payments, and member states should regularly monitor access to cash. Particular attention is expected to be given to older people, low-income individuals and groups without access to the traditional banking system.
The European Parliament negotiating team will be led by Spanish MEP Fernando Navarrete Rojas of the European People's Party (EPP). The first round of negotiations with the Irish presidency, representing the member states, is expected to take place shortly.
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