The Challenges Facing the EU’s Digital Euro in Non-Euro Member States
The European Parliament has identified potential challenges for the EU’s digital euro in non-euro member states, according to a review. One major challenge is the need for international agreements between the EU and third-countries for the monetary acceptance of the digital euro across the entire bloc. The report emphasizes that any arrangement between the European Central Bank (ECB) and a non-euro area national central bank would require an international agreement.
Complicated Legal Questions
Erwin Voloder, Head of Policy at the European Blockchain Association, highlights the complexity of legal questions surrounding CBDC usage, wallets, and jurisdiction. He emphasizes the lack of working solutions and calls it the biggest future challenge. While there is political will within the EU to make a digital euro work, operational and legal challenges must be addressed.
The investigation phase of the digital euro project, initiated by the ECB’s Governing Council in July 2021, aims to address key issues. By October, the ECB will decide whether to proceed to the next stage of development and testing.
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