New changes in the draft law on digital euro discussed by the European Union Economic and Financial Affairs Committee
Digital Euro: Changes in the Draft Law Discussed by the Committee on Economic and Monetary Affairs of the EU
During today’s meeting, the Committee on Economic and Monetary Affairs of the European Union discussed the updated draft law concerning the digital euro. The document reveals several significant changes that may impact the functioning of this modern form of currency.
Support for Permissionless Blockchains
One of the key changes in the draft law is the support for permissionless blockchains. This means that conditional transactions in digital euros will be allowed to operate on this type of technology.
Conditional Transactions on the “Layer Above”
According to the new regulations, conditional payments in digital euros will function on the so-called “layer above.” This is a significant change that introduces new possibilities for executing such transactions.
Balance Limit and Banks’ Capability
Banks had concerns regarding the size of the balance limit in digital euros, which initially stood at €3000. It has now been reduced to €500. Furthermore, banks and payment service providers will now have the autonomy to set balance limits on their own.
Fees, Costs, and Financial Opportunities
Fees for transferring digital euros will be determined by the market rather than legislation. There are also questions about covering the costs associated with this form of currency; however, the legislation mandates the necessity of covering implementation costs.
New Rules for Payment Service Providers
In the previous version of the draft, banks were obligated to provide digital euro services. Currently, this rule extends to most payment service providers, marking a significant shift in the approach to the functioning of the digital euro.
The discussed changes in the draft law concerning the digital euro represent a crucial step in the development of this new form of currency. The introduction of new transactional possibilities, as well as flexibility regarding limits and costs, could lead to greater acceptance and utilization of the digital euro in the European financial market.
