European Commission Supports Digital Euro Project, Major Breakthrough for Digital Payment Industry

The European Commission is backing the digital euro project proposed by the European Central Bank (ECB), European Commissioner for Economy Paolo Gentiloni said.

Addressing a press conference on Friday following a Eurogroup meeting, Gentiloni said the project was being seen "as a potentially important element of a strong and innovative digital finance sector" as well as one that could lead to more efficient and resilient payment systems.

"A digital euro could also support broader policy objectives: the digitalisation of our economy, open strategic autonomy, and strengthening the international role of the euro," he added.

Gentiloni warned that a digital euro has opportunities and risks "which need to be carefully taken into account as we move forward".

During the meeting, the finance ministers of the euro area were given a presentation on the topic by ECB chief Christine Lagarde.

Eurogroup President Paschal Donohoe said the finance ministers of the euro area were "looking with interest" at the idea of creating a digital euro which "has the potential to affect our way of life in the years to come".

"This is an important project, not just technically, but also politically, and I expect that Eurogroup ministers will play an important role in considering the case for and the political dimensions of a digital currency," he said.

The EU Finance Ministers also continued their discussions on setting up a banking union.

"Our banking system has proven its resilience to date during the era of Covid-19," Donohoe added.