On Tuesday, the European Parliament took steps toward the creation of a digital euro, which lawmakers described as “essential” to strengthening the European Union’s monetary sovereignty.
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In its annual report on the activities of the European Central Bank (ECB), legislators approved two amendments related to the project. In the first amendment, Parliament stressed the importance of creating a digital euro, particularly “in a context of significant geopolitical uncertainty and excessive dependence on payment infrastructures” from third countries.
“It is essential to strengthen the Union’s monetary sovereignty, reduce fragmentation in retail payments and support the integrity and resilience of the single market,” states the amendment, which was approved by 438 votes in favor, 158 against, and 44 abstentions.
The second amendment highlights that the digital euro “must contribute to safeguarding universal access to payments and achieving broad acceptance by merchants across the Union.”
It also warns that leaving the digitalization of payments exclusively in the hands of private actors and third countries risks creating new forms of exclusion for both users and merchants. This amendment was approved by 420 votes in favor, 158 against, and 64 abstentions.
Currently, the ECB is moving ahead with technical work on a project that aims to carry out an initial issuance of digital euros in 2029. That goal can be achieved provided the European Parliament and EU member states finalize the necessary legislative framework this year to allow for its launch.
Beyond these amendments, the European Parliament’s resolution emphasizes the importance of maintaining the role of cash and calls on the ECB to intensify oversight of crypto assets.
The ECB’s annual activity report also states that the institution’s independence is “essential” for fulfilling its mandate of maintaining price stability.
Regarding monetary policy, lawmakers said a faster return to price stability “should have been achieved during the recent period of high inflation” and urged the ECB to “carefully analyze the causes of this persistent inflation.”
[ SOURCE: TELESUR]
