In Europe, where pilot studies for the digital euro continue, the possibility of using the digital euro in the region in 2025, after the draft law to be enacted in 2023, is focused on.
European Union Financial Affairs Member Mairead McGuinness gave information on the subject at a fintech conference organized by Afore Consulting. McGuinness stated that there is a demand and their goal is to set the legislation in early 2023, and that they will start negotiations for the digital euro law in the coming weeks.
The European Central Bank (ECB) wants to make a detailed study for the digital euro, taking into account financial stability. The ECB administration is the unit that will make the final decision for the implementation of the digital euro, but European Union politicians want the process to be accelerated.
The Governor of the Bank of France, François Villeroy de Galhau, is one of those who offer the idea that the union should not fall behind on the issue of a central bank digital currency. Fabio Panetta, member of the ECB Board of Directors, thinks that the ECB can better ensure user privacy than private companies by issuing a euro in digital form.
Concerns about stablecoins are seen as another reason for the positive approach of countries towards CBDC issuance. The ever-increasing market value of fixed crypto assets and the lack of supervision are seen as a threat from a financial perspective. Countries, on the other hand, want to maintain control in this area by issuing digital forms of their national currencies.
The most striking example on this subject was the Diem project, which was thought to have great potential. Meta's Diem project had the potential to become an important stablecoin globally. However, the project was terminated before it even started, especially with the veto from the USA.