The European Central Bank's push for a digital euro is questioned by EU lawmakers

ChainCatcher news, according to market news, the European Central Bank (ECB) is again pushing for the issuance of the digital euro, but has faced opposition from EU lawmakers due to privacy protection issues and potential risks to commercial banks.

Piero Cipollone, a member of the ECB Governing Council, stated to the Parliament's Economic Committee on Thursday that the digital euro "will ensure that all Europeans can use a free, universally accepted digital payment method at any time, even in the event of significant disruptions." Some lawmakers expressed concerns, fearing that digital currencies may not protect user privacy and that accounts supported by the central bank could undermine the private sector.

Regarding privacy issues, Cipollone emphasized that the central bank will not have access to the information of payers and payees, and that the privacy protection of offline digital currency solutions can be comparable to cash. Since 2023, legislation on central bank digital currencies has been submitted to the European Parliament, but has been delayed due to political and electoral influences.

Cipollone stated that the ECB expects the legislation related to the digital euro to be in place by the second quarter of 2026. The digital euro needs to be approved by the three main EU institutions, including the European Parliament, the European Commission, and the European Council. Related negotiations could take several months, and the legal passage could be delayed until mid-2026. After that, the ECB will need to create and test the digital currency infrastructure, which could take up to three years. If there are no delays, the digital euro is expected to be launched around 2029.