EU Parliament Unblocks Key Political Hurdle in Digital Euro Negotiations

After months of political gridlock in the European Parliament, EU lawmakers have overcome a key obstacle to the digital Euro, bringing the proposal closer to approval says Euronews. EU lawmakers have overcome a key political hurdle in the negotiations of digital euro, making the project closer to approval, according to a draft text seen by Euronews.

The Parliamentary rapporteurs involved in the legislation have found an agreement on the design of the digital euro, which will be able to function both online and offline.

The digital Euro would be an electronic form of cash issued by the European Central Bank, designed to sit alongside banknotes and the payments services offered by commercial banks.

It has taken on new political weight as economic tensions between the EU and the US sharpen the debate over Europe’s reliance on American payment giants, such as Visa and Mastercard.

Under the European Commission’s proposal, digital euro users would have a wallet for both online and offline payments, with transactions designed so they are not trackable.

The situation in Parliament changed on Wednesday evening, when the centre-right politician Fernando Navarrete, who is the leading rapporteur on the file, announced the withdrawal of his position to reduce the scope of the digital euro to offline use only.

His position blocked the advancement of negotiations for months, jeopardising the whole legislative process, according to three sources familiar with the negotiations.

Source: Euro News