The Legal Obstacles on the Road to Central Bank Digital Currency (CBDC): The Digital Euro Project

Central Bank Digital Currency Development, Challenges and Future Recommendations in Global Countries

“…Recently, the Central Bank of Japan has proposed that it will launch a CBDC pilot programme in 2023, the Central Bank of Saudi Arabia has indicated that it is accelerating its research on CBDC, and the Federal Reserve and the European Central Bank's perceptions of CBDC have gradually changed [15]. In the face of the new global CBDC R&D situation, the Fed and ECB's position on CBDC R&D has shifted from hesitation to cautious openness, and there has been a marked increase in the regulatory discussion about CBDC by the legislature and the public [16]. The ECB has not only proposed a concrete plan for the digital euro, but will enter a new phase of regulatory rule-making in 2033.…”

“…The ECB has not only proposed a concrete plan for the digital euro, but will enter a new phase of regulatory rule-making in 2033. ECB President Christine Lagarde previously stated that issuing a digital euro would facilitate the expansion of payments innovation across the euro area, thereby reinforcing Europe's strategic autonomy [17].2022 Since 2022, tests related to the digital dollar have been on the agenda, with the U.S. White House, federal regulators, the Department of the Treasury, and the Federal Reserve intensely focusing on the progress of digital dollar research, and the New York Federal Reserve Innovation Centre proposing to explore a network of regulated liabilities in November that year [16]. Centre proposed to explore the feasibility of a US pilot project for a regulated liability network, in which Wall Street financial institutions would participate by issuing tokens and simulating central bank reserve settlement transactions [1].…”