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Debate intensifies over proposed digital euro as CBDC plan advances

Supporters argue the ECB backed digital euro would cut reliance on non European payment providers and keep central bank money available online.

Reported · Written up by our desk · Regulation

Cointelegraph highlights a growing debate over the proposed digital euro, an ECB issued form of central bank money designed for use in an online economy. Proponents say it would serve as a better alternative to cash while preserving European monetary sovereignty and reducing reliance on foreign payment providers, including USD stablecoins.

According to Cointelegraph, the ECB position is that a digital euro would help Europeans pay with sovereign money issued by the central bank in the digital economy. The outlet also points to former Deutsche Bank managing director Pius Sprenger and other critics who warn that a CBDC could enable supranational surveillance and limit how citizens can spend money.

The article notes that President Donald Trump signed an executive order in January to ban CBDCs in the United States, citing risks to the financial system, individual privacy, and US sovereignty. It also says a ban until 2030 was later formalized in housing bill legislation, while the ECB says it will be able to proceed without major issues.

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