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EU Finance Ministers Issue Political Statement on Digital Euro

  • The Eurogroup supported digital euro research but noted that some design and use components will require political decision-making.

  • The European Central Bank and European Commission must brief the Eurogroup and EU member states on digital euro development.

17-Jan-2023 By: Sudeep Saxena
EU Finance Ministers

The Eurogroup reaffirmed its support for digital euro research while noting that political decision-making will be necessary for some of the design and use components under consideration.

After a meeting in Brussels, the finance ministers of the eurozone nations issued a statement on the implementation of the digital euro. It added that the Eurogroup meets frequently to talk about the political aspects of a prospective digital currency. The remark was made on January 16 at the same time as a stock-taking report from the European Central Bank (ECB) outlining the development of the digital euro design.

The European Central Bank and European Commission must update the Eurogroup and EU member states on progress in the development of the digital euro, which is currently under investigation, according to the Eurogroup statement. The Eurogroup believes that the introduction of a digital euro, along with its key features and design choices, necessitates political decisions that should be addressed and made at the political level, according to the statement.

The committee stated the topics it was keeping an eye on, including the effects of digital currencies on the environment, privacy, financial stability, and other relevant matters. It has indicated interest in non-eurozone member states of the European Union's proposals for central bank digital currencies.

Before the ECB Governing Council evaluates the findings of the digital currency investigation phase in the third quarter of the year, that suggestion is planned to be presented.

The Eurogroup announcement follows an editorial in the Financial Times by a former Bank of England adviser that claimed the expense and risk of building CBDCs were not worth it.