In quite a historic move, Stefan Berger, eminent architect of the EU’s notable Markets in Crypto Assets regulation or MiCA, has now undertaken the formidable task of leading new legislation for a digital euro. Given the controversy that the EU’s central bank digital currency (CBDC) has incited, this will be no mean feat.
As an advocator for decentralization, Berger occupies the view that owning a digital euro brings autonomy to the EU that is not reliant on non-EU countries. Here is the underlying notion of progression into the digital era, hinging on the regulatory endorsement of crypto assets. However, Berger offers a gentle reminder that for this transition to ensue successfully, faith in the digital euro among the masses should be as deep-rooted as it is in cash.
Interestingly, despite significant resources being poured into technical planning towards the CBDC, the European Central Bank maintains an undecided stance on formally issuing it. The laws backing the currency in areas such as data protection shall be authorized by the EU’s national governments and the Parliament. Internal talks suggest that their verdict shall be greatly influenced by the political environment within the Parliament.
While Berger’s approach towards this new undertaking rings somewhat optimistic, it is worth noting the firm skepticism held by several of his Parliamentary colleagues regarding the upside of a digital euro. Surprisingly, even within his political group, the economic spokesperson Markus Ferber shares this concern.
The Dutch MEP, Michiel Hoogeveen, who is expected to spearhead the negotiations for the European Conservatives and Reformists political group, has openly disagreed with the proposal. He criticizes the digital euro as an unnecessary solution that only complicates the scenario for consumers and risks shaking faith in financial systems.
Commission officials maintain their belief that this CBDC could serve as a boost for innovation during these geopolitical unsettling times. They further propose that its functionality should be similar to cash, offering offline usability.
As his prior experience highlights, Berger, now acting as rapporteur, will draw up alterations to the draft law that can be further amended and voted upon by other lawmakers. During its subsequent phase, Berger will mediate discussions with the Council to agree on a concretized version of the text.
Whether Berger’s foresight and proactive efforts turn the tide of opinion among his skeptical peers remains to be seen. There are still more questions than answers, but Berger evidently sees hope in a digital future, where trust seamlessly transitions from physical to digital currency.
Source: Coindesk
