European Commission aims for universal acceptance with digital euro proposal

With this decision, the European Commission aims to open up the payment market controlled by banks, Visa and Mastercard.

On June 28, the European Commission announced that it had proposed a legislative plan for a digital euro, aiming to make it a widely accepted and easily accessible form of payment.

The announcement highlighted that allowing individuals to obtain digital euros through their banks on demand ensures easy access and prevents citizens from being left behind. The proposal also includes provisions for free basic digital services in euros, privacy protection and offline payments.

In a separate proposal, the commission suggested that banks, insurers and funds should share customer data with fintech companies in exchange for compensation, in a bid to promote the advancement of finance digital. Under this proposal, companies holding customer data must share it quickly and continuously with participating companies upon customer request, ensuring real-time access to information.

With this decision, the commission aims to open up the payments market controlled by banks, Visa and Mastercard, which now faces competition from fintech companies offering alternative services. In addition, the proposed legislation prioritizes user privacy and data protection, while minimizing the risks of money laundering and terrorist financing.

Related: EU finalizes controversial smart contract kill switch rules under data law