Economy Minister Giancarlo Giorgetti, who spoke in Copenhagen on the occasion of the Eurogroup and Ecofin, has released its position on the digital euro project through an official note. His words highlight the priorities of the Italian government and the framework of European discussions on a measure that could transform the payments system. Giorgetti underlined the importance of adopting a clear and transparent procedure to define the limits of possession of the digital euro. This aspect is considered crucial to prevent the tool from being transformed into a reserve of value, thus preserving the balance of the financial system. “Having clear and appropriate detention limits – he explained – will favor the use, will prevent it from becoming a value reserve and respond to the concerns of the private sector regarding the impact on financial stability”.
Consumer management and protection costs
Another central point concerns management costs. The minister reiterated that the compensation model must be less than that of traditional payment cards. The goal is to protect consumers and make the euro digital a competitive and effective tool compared to the tools already disseminated in the market. Reducing the costs of electronic transactions is in fact one of the conditions to ensure the spread of the tool and strengthening its adoption at European level. In the official note, Giorgetti also emphasized the role of the digital euro in the defense of European financial sovereignty. The tool, he explained, must ensure “strategic autonomy and resilience of our financial system in the face of external threats”. This is a political objective as well as economic, which aims to strengthen the independence of the European Union in a global context characterized by strong competition and geopolitical risks.
The European comparison
The issue of detention limits and the emission process was at the center of the discussions in Copenhagen. At the end of the meeting, the president of the Eurogroup Paschal Donohoe confirmed that a broad consensus was achieved on the balance between the various issues involved, in compliance with the prerogatives of each institution involved. Christine Lagarde, president of the European Central Bank, has defined the agreement an “important step forward”, underlining the urgency to quickly continue legislative work at European level.
What is the digital euro
The digital euro is designed as a means of electronic payment accessible free of charge to all citizens of the euro area. It would have characteristics similar to cash in terms of safety and confidentiality, but with the possibility of being used in digital form, also offline, through an electronic wallet (Wallet) provided by authorized banks or intermediaries. The goal is to offer a uniform European tool, reducing dependence on international payment circuits. Each user could hold digital euros up to a maximum established threshold, with the possibility of connecting the wallet to their current account for automatic transfers. This setting would serve to maintain the stability of the banking system, avoiding excessive dealer of deposits. The new tool, in addition to guaranteeing quick and safe payments in stores and online, could make recurring payments such as rentals and bills easier.
