Debate: Digital euro
Date: WEDNESDAY, 19 APRIL 2023
Speaker: Mairead McGuinness
Language: EN

Mr Ferber, I think, is not in the chamber, but he asked a very big question, which, as a former journalist, I used to ask all the time: why? And I would say to this because we already have a very digitalised financial system and we need to look ahead and make sure that the digital euro is fit for the future. But let me just try and imagine, had we never been discussing a digital euro right now. So if it was not on the agenda and no preparations were being done. In a few years’ time, I think this House would be asking: why not? Why did you not prepare for the possibility of a digital central bank currency in Europe?  I also note the study prepared by Parliament for the ECON Committee, with a very catchy headline. It says ‘Digital euro: when in doubt, abstain, but be prepared’. And I think that’s exactly what we are doing today and what we’ve been doing with the ECB over the last number of months. And it is still a work in progress.  But I want to talk about cash because in my view, citizens, young and old, appreciate cash and appreciate choice. They may use a wallet for digital payments, but they appreciate access to cash. And I think it’s important to outline what we are doing when it comes to protecting the right to have access to cash.  Issues concerning the acceptance of cash and access to it have emerged right across a number of our Member States, and it can lead to issues for people, particularly vulnerable groups. So unless we safeguard the acceptance of and access to cash, the effectiveness of legal tender could be undermined.  If the Commission decides to grant legal tender status to the digital euro and define its meaning, we believe that we need to do the same for cash. So in the second quarter, the Commission will also propose a regulation on the legal tender status of euro cash based. The legislative proposal will be based on the 2021 ECJ new ruling judgment, which defines three key principles of legal tender: mandatory acceptance at full face value and the power to discharge payment obligations.  I think when it comes to the issue of privacy, this was raised rightly by members in the House here and it is a very important topic, because privacy is a fundamental right and it’s a highly valued issue for citizens. And this has been clearly substantiated by the ECB consultation and our targeted consultation.  We are also mindful of providing a solid framework to efficiently and effectively fight against money laundering and terrorism financing. So the regulation will aim to ensure that these objectives can be reconciled. So, for example, we could have an offline use to do proximity payments, peer-to-peer payments, and this would be important for citizens and in particular for unbanked people, as referenced in the debate. These offline payments could offer higher privacy. On the issue which was raised and rightly by MEP Hübner on retail versus wholesale, the Commission is examining central bank digital currencies in the broad sense, so the current work is focusing on a retail digital euro, which is also in the regulatory competence of the Commission. That said, the wholesale use of a digital euro in security settlements can also be of interest.  The question also about the role of the euro for the future, the international role of the euro, the open strategic autonomy. All of these topics raised today are hugely important.  I repeat the point that the digital euro needs a strong democratic underpinning, and Parliament’s views and support are essential within and beyond the legislative process.  The digital euro will ensure the continued availability of central bank money and payments, and this will protect the stability of our monetary and payment system and ensure our open strategic autonomy. The digital euro would be an additional pan-European choice available for payments, and we will aim to ensure competition with the private payment sector and to avoid the disintermediation of banks.  Let me just say something very clear in case you’ve missed it. This is not a Big Brother project or indeed a Big Sister project. But why does Big Brother sound much more alarming than Big Sister? But I say that in all sincerity and with some humour. I respect those who have that view. But frankly, I would ask us to calm down a little. We should not address this issue to citizens in this chamber as any sense of a project of control. It’s a project of choice. It’s also recognising that the citizens in this chamber, many of them use cash and digital payments and will want to continue to do that. We do have a euro, which is a unique currency for the eurozone, and it’s very important that we do keep it fit for the future.  I dare say I have not convinced those who see it as that awesome project of control, but I hope the vast majority of Members in this House will view this debate as the start of a very important conversation, which you will, I’m sure, engage with your constituencies and citizens, and that we will continue this debate until such time as the legislative process is before you.