German MEP Stefan Berger, renowned for his role in shaping the EU’s crypto landscape with MiCA, is now tasked with guiding the development of a digital euro. With a reputation as a proponent of cryptocurrency innovation, Berger’s new role underscores the EU’s push to establish its digital presence, ensuring self-reliance in an increasingly digital age.
“Having your own digital currency makes the EU more independent of non-EU countries and is part of the digital age,” Berger expressed, emphasizing the significance of the initiative. He stressed the importance of building trust in the digital euro, likening its reliability to that of traditional cash.
While the European Central Bank (ECB) has not yet made a formal decision on the central bank digital currency (CBDC), it has invested substantial resources in technical preparations. The decision-making process is also influenced by the political atmosphere within the European Parliament and the Council of EU national governments.
Berger’s task involves proposing amendments to the draft law, which fellow lawmakers can further modify and vote upon. This intricate legislative process aims to align diverse perspectives and produce a unified text that serves the interests of all stakeholders.
However, skepticism looms within the EU Parliament. Markus Ferber, the economic spokesperson for Berger’s own political group, has expressed reservations about the benefits of a digital euro. Similarly, Dutch MEP Michiel Hoogeveen has criticized the initiative, deeming it a solution in search of a problem, capable of causing confusion and eroding confidence in financial systems.
The proposed digital euro, like MiCA, seeks to establish standardized regulations and rules for crypto assets across the European Union. MiCA itself marked a significant milestone, receiving overwhelming support in the EU Parliament with 517 votes in favor, 38 against, and 18 abstentions. The comprehensive legislation introduces a framework to enhance the competitiveness of EU startups while curbing money laundering through stringent customer identification procedures.
As the European Parliament debates the viability and benefits of a digital euro, the role of Berger as a crypto advocate-turned-legislator holds immense weight. The landscape of digital finance is rapidly evolving, and the outcome of these deliberations will play a pivotal role in shaping the future of the European Union’s digital economy.