MiCA publication in OJEU gets EU Commission’s CBDC agenda back on track.

The European Union is preparing to introduce a digital Euro, a Central Bank Digital Currency (CBDC) backed by the EU market. Mairead McGuinness, the current EU Commissioner for Financial Stability, Financial Services, and the Capital Markets Union, has announced that she will present a bill on the matter next week. The EU CBDC plan will cover sensitive issues such as distribution, privacy, and offline transaction capabilities. According to a study by Juniper Research, the global value of CBDCs is expected to grow from $100 million in 2023 to about $213 billion by 2030.

With the European Union controlling more than 20% of global economic activities, a digital Euro is expected to expedite the process of digitization. Many countries around the world are looking into the digitization of their economy for sustainable growth.

However, the plan to establish a digital Euro has met with opposition due to concerns over the amount of authority that would be given to monetary issuers over users. The EU has reportedly removed the tentative CBDC agenda that was published by the commission earlier on Tuesday. Nonetheless, Commissioner McGuinness has stated that a proposal on CBDC is due next week.

Why the EU Needs a Functional CBDC

The European Union Central Bank has noted that a digital Euro would significantly benefit all parts of society by ensuring citizens’ privacy and market resilience. The ECB has previously stated that it is not interested in seeing or storing users’ private information.

The EU has been conducting research on the CBDC market and the best ways to roll out the CBDC plan. With the European Union’s Markets in Crypto Assets law (MiCA) already published, the region is expected to remain ahead of other major global markets like the United States that are still struggling with coming up with clear rules.

The ECB is expected to make a decision later this year on whether to continue with the plan of rolling out the CBDC. Furthermore, the EU bloc intends to go through an economic phase to help in sustainable growth.

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