ECB Pushes for Acceleration in Digital Euro Development

European officials are being urged by the European Central Bank (ECB) to move quickly on the digital euro initiative. Legislative delays have raised concerns that Europe may fall behind the rest of the world in the competition for central bank digital currency (CBDCs).

The ECB’s digital euro initiative project manager, Evelien Witlox, emphasized the significance of staying up to date with international initiatives. She cautioned in an interview with Euronews that China and the United Kingdom, who are making progress in their CBDC investigation, could overtake Europe.

Currently, the eurozone lacks a unified digital payment system, with 13 out of 20 member states relying heavily on international card providers such as Visa and Mastercard. Witlox noted this dependency creates fragmentation, adding, “the ones that come closest to covering the whole of Europe are non-European.”

Legislative Bottlenecks and Future Prospects

The ECB launched its CBDC exploration phase in October 2021. However, the digital euro’s progress hinges on the European Parliament and Council finalizing the legal framework. This step has faced delays, with nearly 17 months passing since the European Commission’s initial proposal.

Witlox emphasized the need for urgency, stating, “we need sufficient pace in this process so that we can ensure that the digital euro will be there when we really need it.” Despite the delays, she remains optimistic, asserting that Europe still leads in CBDC development.

While no definitive timeline exists for the digital euro’s launch, the ECB continues to advocate for swift action to position Europe as a leader in this emerging field.