The European Commission (EC) reportedly disclosed that a proposal focusing on legislation for a digital euro will be finished putting together by 2023. 

Specifically, EC finance chief Mairead McGuinness reportedly shared official revelations regarding the European Union’s formal consideration of digital euro legislation during a fintech conference on February 9th.

“Our goal is to table legislation in early 2023. A targeted legislative consultation in the coming weeks.” the commissioner for financial service further remarked. 

The European Central Bank (ECB) is currently running testing with designs and networks associated with a digital euro, with the timeline for a prototype being the latter half of 2023. 

Should the implementation of a digital euro be finalized, it will need to acquire the seal of approval from Eurozone governors and if the go-ahead is granted, the digital euro will be available for mass introduction by 2025.

The digital euro will reportedly function as a central bank digital currency (CBDC) –  a financial instrument that central banks throughout the globe are investing heavy resources in deep-diving into. 

The growing interest in CBDC’s has reportedly stemmed from increasing worries that domestic currencies will eventually be undermined by the growing popularity of cryptocurrencies.

“If we don’t satisfy this demand, then others will do it,” ECB Executive Board Member Fabio Panetta previously shared in November last year, supporting the implementation of a digital euro.

In 2021, the ECB reportedly carried out the study and published a report on digital currencies, where the insights suggested that a digital euro may help bring down interest rates, accelerate transaction processes and reduce cash use.