Stefan Berger, a member of the European Parliament (MEP) from the center-right, has been selected to spearhead new legislation aimed at establishing a digital euro. Berger, known for his role in steering the EU’s significant Markets in Crypto Assets regulation through the Parliament, will now play a comparable role in shaping the legislation for a central bank digital currency (CBDC), a concept met with skepticism by many of his colleagues.
Berger expressed the importance of having a digital euro for the EU’s independence from non-EU countries and its alignment with the digital era. He emphasized the necessity of trust in the digital euro, akin to trust in physical cash.
While the European Central Bank (ECB) has not yet made a definitive decision regarding the issuance of a CBDC, it has invested considerable resources into technical preparations for such an endeavor. The process requires agreement from the European Parliament and EU national governments in the Council to establish the legal framework, including matters like data protection.
Berger’s stance has generally been perceived as pro-crypto; he opposed an initiative to restrict energy usage through proof-of-work technology, which some interpreted as a ban on bitcoin. As the rapporteur, Berger will present amendments to the draft legislation, subject to further modifications and voting by other lawmakers. In subsequent stages, he will lead negotiations with the Council to create a consolidated version of the text.
Despite Berger’s positive perspective, several European Parliament members remain skeptical about the advantages of a digital euro. Notably, Markus Ferber, the economic spokesperson for Berger’s political group, has expressed reservations. Dutch MEP Michiel Hoogeveen, who will lead negotiations for the European Conservatives and Reformists political grouping, also conveyed opposition to the digital euro. He argued that it might cause confusion among consumers and undermine confidence in financial systems.
European Commission officials contend that the CBDC is essential for fostering innovation amid geopolitical tensions. They’ve proposed that the digital euro should be usable offline, similar to physical currency.