Brussels, 28 June 2023 (dpa/MIA) - The European Commission laid the groundwork for the digital euro to be accepted as legal tender in the eurozone with a proposal on Wednesday in Brussels.

With non-cash payments more common after the Covid-19 pandemic, the euro should "adapt to the digital age," European Commission Vice president Valdis Dombrovskis said in a press conference.

The aim is for the public throughout the eurozone to be able to make payments at any time, online and offline, for free, with businesses obliged to accept the digital currency.

The commission said that users of the digital euro would benefit from greater privacy during their spending with less data disclosed than in a transaction with a card payment.

A second proposal, according to the commission, secures the place of cash in the eurozone as a widely accepted means of payment as work continues to introduce the digital euro.

EU Financial Services Commissioner Mairead McGuinness stressed in a press conference that the digital euro is to complement and not replace the role of cash.

"For many, cash is king," McGuiness said, underlining that public trust in the digital euro would be essential for the currency's success.

Once adopted by EU member states and the European Parliament, the framework allows the European Central Bank (ECB) to issue the digital euro, "if and when" it decides to do so, a commission statement said.

Questions surround the purpose of the digital euro. The ECB and commission still need to make the case for the currency's added value, German EU lawmaker Markus Ferber said in a statement.

The commission also published measures to boost data sharing in the financial sector and promote further competition in the payment services market in a separate package.

Photo: EPA