The European Union has been debating whether or not to issue a digital euro for some time now and recently, lawmakers have been voicing their concerns and skepticism. The EU official in charge of financial services policy, Mairead McGuinness, is due to publish a bill next month that covers the euro’s status as legal tender, the compensation private operators would receive for distributing the currency, and privacy.

Members of the EU parliament are raising many questions like what if any is the added value of a digital euro compared to current payment options, why is the European Union doing this, and what is the risk of private stablecoins or foreign central bank digital currencies filling the gap? They are also skeptical about privacy, state control, and the role of banks.

On the one hand, supporters of the digital euro say that it can mainly facilitate innovation and machine-to-machine payments and pose a challenge to foreign central bank digital currencies. On the other hand, some lawmakers worry that it could be a tool of authoritarian control, or that the project is being unduly influenced by the private banking sector.

The European Central Bank will make a formal decision about whether or not issue a digital euro later this year. Ultimately, it is important for everybody involved that the European Union considers all the pros and cons of the digital euro and addresses all the concerns of the people and lawmakers in order to move the project forward in a beneficial way.



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