The European Parliament has officially backed the creation of a digital euro.
Lawmakers voted 416 in favor, 169 against, and 22 lawmakers abstained from the vote. According to the motion, parliament will press for the digital euro to be issued by the European Central Bank (ECB).
ECB President Christine Lagarde celebrated the vote, and described that the European Parliament, the Council, and the Commission will “work together to come out with a final version that will apply across the board.”
“Once this happens, the trilogue, as it’s called, is over and satisfactory. Then we at the European Central Bank will get started with rolling out all of our technical work, all testing and piloting, so that as soon as possible—as long as everything is technically solid, valid, and safe—we’ll be able to launch the digital euro as well,” Lagarde said.
According to a news release on the development, Parliament’s negotiating position includes implementing privacy safeguards, where transactions would be “verified without exposing personal data, which would be processed only to the extent strictly necessary for the system to function.”
“Most businesses would be required to accept digital euro,” it adds. “Exceptions would apply to the self-employed and small and micro enterprises that do not accept other digital payments.”
Earlier this year, the United Kingdom announced plans to pursue digital ID. In an address to Parliament, King Charles III said, “My Ministers will also proceed with the introduction of Digital ID that will modernise how citizens interact with public services.”
Last year, more than 1.2 million people signed a petition opposing the digital ID proposal within 24 hours of its rollout.
