Today, the Danish EU presidency has reached a Council agreement on the Single Currency Package, which, among other things, enables the European Central Bank (ECB) to issue a digital euro.
The digital euro is an electronic version of euro cash (i.e., euro banknotes and coins), designed to ensure broad access to a simple, secure, and cheap digital means of payment in the euro area. The heads of state and government of the EU member states have repeatedly emphasized at euro summits the strategic importance of the digital euro for Europe.
The Danish Presidency has now been successful in reaching agreement on a common position in the Council.
Stephanie Lose, Minister for Economic Affairs, says:
“The fact that the Danish presidency today has been successful in reaching an agreement in the Council on the framework for the issuance of a digital euro is an important strategic result for Europe. The digital euro is an important step toward a more robust and competitive European payment system that is less dependent on countries and solutions outside the EU and can contribute to Europe’s strategic autonomy and economic security as well as a strengthened international role for the euro.”
Morten Bødskov, Minister for Industry, Business and Financial Affairs, says:
“The strategic autonomy of Europe needs to be strengthened. This is also the case for the payment systems. The intent of the proposal on the digital euro is to strengthen the robustness of the payment infrastructure in the euro area. The consensus in the Council therefore sends the clear signal that the EU can act on this important agenda.”
The aim of the proposal establishing the legal framework for a possible digital euro is to enable the ECB and the central banks of the euro area to issue a digital euro, if the ECB decide to do so.
The Council will now negotiate with the European Parliament with a view to reaching agreement on the Single Currency Package, including the framework for the issuance of a digital euro. If the ECB subsequently decides to issue the digital euro, it will be introduced in the euro area, but not in countries outside the euro, such as Denmark. The proposal includes the possibility for a non-euro area country to gain access to the digital euro on a voluntary basis subject to an agreement is between that country’s central bank and the ECB.
Read more about the agreement on the Council of the EU’s webpage.
