The push for a digital euro has gained greater urgency as Europe seeks to bolster its financial sovereignty, with hopes the proposal will move forward this year after European lawmakers Tuesday backed the plans.
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.
Supporters say it would let Europeans make online payments without relying on US payment 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.
First suggested by the European Central Bank (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.
There is renewed optimism that the European Parliament could really take that step this year after lawmakers on Tuesday expressed their support for the project.
"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," an amendment backed by lawmakers said.
ECB chief Christine Lagarde on Monday sought to assuage privacy fears, telling EU lawmakers that the bank "would not have access to personal data".
Source: The Local Italy
