Khaberni - The Committee on Economic and Monetary Affairs of the European Parliament approved today, Tuesday, the long-awaited digital euro project, as part of the European Union's efforts to reduce its dependence on US-dominated payment systems.
According to (Euro News), the European Central Bank stated in a release: "We welcome the agreement of the Committee on Economic and Monetary Affairs in the European Parliament on its position concerning the single currency package, which will ensure the protection of cash in euros as legal tender, while contributing to shaping the features of the digital euro."
Under the proposal, consumers will be able to hold a digital euro in a dedicated wallet, subject to a yet to be determined cap on holdings.
The system will support online and offline payments and is intended to provide a high level of privacy, such that the European Central Bank cannot directly identify users from their payment data.
The European Central Bank will provide the core infrastructure, while commercial banks and payment service providers will offer digital euro services to customers. Financial institutions are expected to receive compensation for their participation in this system, while merchants will pay fees that are supposed to be lower than the current fees imposed on card transactions.
According to data from the European Central Bank, the American payment giants "Visa" and "Mastercard" account for 61 percent of card payments in the euro area and nearly all cross-border card transactions.
