The European elections are coming! In early June, European citizens will head to the polls to elect the new European Parliament. The 2024 election holds significant implications for the future of digital currencies in Europe, including crypto assets, stablecoins, and central bank digital currencies (CBDCs) in the form of the digital euro. Here is all you need to know.
Why This Matters
The European Parliament plays a pivotal role in regulating digital currencies and is a key pillar of all legislative processes within the EU. It was instrumental in drafting the Markets in Crypto Assets Regulation (MiCA), a comprehensive crypto regulation set to take effect soon. The election outcomes will directly influence future regulations. Although the incoming Parliament’s composition is unlikely to affect MiCA immediately, since it’s already been enacted, the real influence will likely be seen in the legislation concerning the digital euro.
The goal of the outgoing Parliament was to finalize their legislative proposal on the digital euro within their term. However, this timeline was not met. Post-election, the new composition of the Parliament—and particularly its ECON committee, which spearheads digital euro initiatives—might opt to revise the current drafts significantly – in the most extreme case they could decide to “start from scratch”. This could delay the legislative process, potentially jeopardizing the planned 2028 launch of the digital euro.
Looking Ahead
The future composition of the Parliament and its leadership in digital euro initiatives remains uncertain. It is my hope that the newly elected officials will embrace an innovative, ambitious, and open-minded stance on crypto assets, stablecoins, and the digital euro. Emphasizing a user-centric design, maximum privacy, and open-source solutions will be crucial to fostering trust and encouraging wider adoption.
Read more in this recent article on Coindesk, where I had the pleasure to contribute to.
