John Paul Phelan
Question:214. Deputy John Paul Phelan asked the Minister for Finance his views on the proposed digital euro; and if he will make a statement on the matter. [30427/23]
View answerThursday, 22 June 2023
Questions (214)
Written answers
Ireland is supportive of the examination of the possibility of a digital euro by the EU institutions. A properly-designed digital euro has the potential to unlock major benefits for citizens, businesses, Member States and the overall functioning of our economic and monetary union. It would also contribute towards digitalization efforts within our economies.
At the same time, it could have a number of important economic and societal implications. There are a number of important technical questions to be examined, and experimentations to be done to ensure the robustness and resilience of a digital euro before it is introduced on a large scale.
The ECB published an initial report on October 2020, which examined the idea of Central Bank Digital Currency (CBDC), a “digital euro”. The ECB launched the investigation phase of the digital euro project in October 2021. The investigation phase aims to address key issues regarding design and distribution and is expected to end in October 2023. This phase does not prejudge any future decision on the possible issuance of a digital euro.
The European Commission is expected to propose a Regulation to establish a digital euro in Q2 2023 and the ECB will accommodate any necessary adjustments to the design of the digital euro that may emerge from legislative deliberations.
The ECB Governing Council will review the outcome of the investigation phase in autumn 2023 and decide, on this basis, whether or not to move to a realisation phase. It is important to note that this phase is not the issuance of a digital euro but a further period to prepare for a digital euro issuance.
Ireland therefore supports the work of the European Central Bank and the European Commission as they examine important technical questions to ensure the robustness and resilience of a digital euro before it is introduced on a large scale.
Additionally, further work is required to engage EU citizens, articulating and proving the practical use value that a retail digital euro would have for them, if any.