vzbv welcomes plans for the digital euro

The EU Commission presented its legislative proposal for the introduction of the digital euro on June 28. The aim is to establish a European payment method that gives the continent greater monetary sovereignty. Certain requirements need to be fulfilled to ensure that consumers genuinely benefit from the digital euro. The EU Commission also published its proposal for a new regulation regarding cash.

Ramona Pop, Executive Director of the Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband – vzbv), says the following:

The digital euro can raise monetary transactions to a new level. A free, almost universally applicable, inclusively designed digital payment method based on European regulations represents a great opportunity. The frustration caused by the chaos with card payments in recent months has highlighted the importance of a widely accepted digital payment method that is reliable and not dependent on a handful of companies.

It is essential that the digital euro protects consumer privacy – particularly when it comes to online payments. The EU must make further improvements to the anonymity of transactions, so that the digital euro puts a stop to data collection. Anonymity is important with respect to digital payments.

The EU Commission proposal, if implemented, would require all banks to provide the digital euro and all private and public organisations to accept it as a payment method. vzbv welcomes this idea. However, there is no benefit to patchwork legislation that fails to benefit consumers.

The digital euro should give consumers simple access to digital payments. We therefore welcome the EU Commission’s proposal that organisations offering services to the public, such as post offices, help people set up and use the digital euro.

The EU Commission’s clarification that cash must be accepted and that rare exceptions will be legally regulated is also positive. This is an important step in ensuring that consumers continue to have the freedom to choose how they make payments and that the downward spiral threatening cash, including in Germany, is stopped. The digital euro must only supplement, rather than replace cash as an anonymous, established, and low-threshold payment method.