The Albany Gazette - EU lawmakers back plans for digital euro

Lawmakers voted in favour of two amendments to an annual report on the European Central Bank (ECB), expressing support for the introduction of the digital currency.

The electronic version of the money used in the 21-nation currency area would be available to use free of charge in shops, online or from person to person.

"The introduction of a digital euro... is essential to strengthen EU monetary sovereignty, reduce fragmentation in retail payments and support the integrity and resilience of the single market," one of the amendments said, approved by 438 lawmakers with 158 against.

First suggested by the ECB, the project has been some six years in the making.

The EU executive formally proposed a digital euro in June 2023 but any law to make it a reality needs the support of member states and European lawmakers.

EU countries in December gave their green light, putting pressure on lawmakers to grant their formal approval too.

Tuesday's vote is only an expression of support at this stage but shows where lawmakers currently stand on an issue that has divided Europe.

Supporters say it would let Europeans make online payments without relying on US card companies or payments systems -- as Europe ramps up efforts to break its dependence on foreign firms including US giants such as Visa and Mastercard.

Critics fear it would allow governments to surveil citizens' payments or even cut them off from the money supply.

ECB chief Christine Lagarde on Monday sought to assuage privacy fears, telling EU lawmakers that the bank "would not have access to personal data".

She also said it was in "no way intended to replace cash".

"Cash is queen," Lagarde said, as she urged lawmakers to move forward.

Lagarde also echoed sovereignty arguments, saying: "It will be built on a fully European infrastructure, avoiding an excessive dependency on foreign providers for payment systems that are critical to the functioning of our economy."

(K.Lee--TAG)