Digital euro statement released by EU finance ministers

Key points:

The finance ministers of the eurozone countries have stated the introduction of the digital euro following a meeting in Brussels.
The statement from the Eurogroup addressed the necessity of the ECB and Commission informing the group about the progress of the digital euro's creation, which is currently in the investigative phase.
Main concerns include the environmental effects of a digital currency, privacy, financial stability, and related issues.
This proposal is intended to be considered by the ECB's Governing Council during its third-quarter review of the digital currency investigation.

The finance ministers of the eurozone countries have stated the introduction of the digital euro following a meeting in Brussels. The Eurogroup meets frequently to discuss political aspects of a potential digital currency, it said. The statement released on January 16th coincides with the release of a European Central Bank (ECB) "stock taking" document that details the progress of the design of the digital euro.

The statement from the Eurogroup addressed the necessity of the ECB and Commission informing the group about the progress of the digital euro's creation, which is currently in the investigative phase. The statement said:

“The Eurogroup considers that the introduction of a digital euro as well as its main features and design choices requires political decisions that should be discussed and taken at the political level.”

The organization listed the concerns it was concerned with, including the environmental effects of a digital currency, privacy, financial stability, and related issues. It also expressed an interest in the plans of non-eurozone European Union members regarding central bank digital currencies.

The members of the group are prepared to participate in these discussions, they said, adding:

“We also welcome the [European] Commission’s intention to table in the first half of 2023 a legislative proposal that would establish the digital euro and regulate its main features, subject to the decision of the co-legislators.”

This proposal is intended to be considered by the ECB's Governing Council during its third-quarter review of the digital currency investigation.

The Eurogroup's statement follows a day after a former Bank of England adviser published an editorial in the Financial Times that stated that the creation of CBDCs is not cost-effective or risk-free.