The European Commission, the executive arm of the European Union (EU), has proposed a legal framework for a potential digital euro.

 

The European Commission, the executive arm of the European Union (EU), has proposed a legal framework for a potential digital euro.  The framework has revealed that the bloc views the digital euro as a currency serving like a digital wallet rather than an investment tool.  EU financial regulation chief Mairead McGuinness said the digital euro would doubtlessly bring advantages to both citizens and businesses across Europe.  According to the document, digital currency would be used even in offline payments, offering similar privacy protection to cash. The bloc will mandate businesses in the Eurozone to accept the digital euro.  However, the EU will block digital euro accounts from earning interest. The legislative proposal mainly aims to ensure that the cash will remain widely accepted in the region.  The European Central Bank's (ECB) Governing Council will decide whether the digital currency will move to the realization phase in the fall. Earlier in June, the EU also officially signed its most comprehensive, region-wide crypto regulations, the Markets in Crypto Assets (MiCA), into law after three years of development. The move marked the first attempt to regulate the crypto industry on such a scale.