The European Central Bank would be required under the proposed plan to regulate the extent to which digital Euros may be used
According to a report by Bloomberg News, the European Union’s executive branch may soon reveal plans for a digital euro that would need regulation by the European Central Bank.
Bloomberg reports that European Union finance ministers will gather in Luxembourg on Thursday to debate the initiative.
As of October 2021, the European Union has begun the research phase necessary to create the central bank digital currency.
The European Central Bank’s website indicates that this stage will end in October. ECB states, “We are investigating the potential market effects of a digital Euro and how it may be implemented. After this information is gathered, a decision will be made on whether or not to begin the development process.”
On Tuesday, an official from the US Treasury indicated that they are also investigating the possibility of a US CBDC, with a particular emphasis on privacy.
Some US politicians, including Florida’s governor, Ron DeSantis, have stated that a CBDC would breach citizens’ privacy and encourage “government-sanctioned surveillance.”
Proponents of CBDCs argue that they may enhance the quality of banking services available to residents. According to the Atlantic Council, eleven other nations have already implemented a CBDC, and all seven of the largest economies in the world are now working on one.
When asked how many nations were contemplating a CBDC in May 2020, the council answered 114, or 95% of the world’s GDP.