Written answers

Thursday, 4 March 2021

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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39. To ask the Minister for Finance his views on the introduction of a digital euro; the assessment of its likely impact on Ireland that has been carried out; and if he will make a statement on the matter. [12224/21]

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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40. To ask the Minister for Finance the representations that have been made to him on the issue of a digital euro to date; and if he will make a statement on the matter. [12225/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 39 and 40 together.

The European Central Bank published a report in October 2020, which examines the issuance of a central bank digital currency (CBDC) – the digital euro – from the perspective of the Eurosystem.

A digital euro would potentially be an electronic form of central bank money accessible to all citizens and firms. It would complement cash, not replace it.

The report raised a number of questions concerning how and when a digital euro could be introduced. The Eurosystem is conducting further analysis to fully understand the challenges and benefits that could emerge from the introduction of a digital euro. The technical implementation of a digital euro needs to be thoroughly tested and legal considerations carefully examined before any decision on issuance is taken. This item was discussed at Eurogroup in November 2020.

Towards mid-2021, having considered the responses received to its public consultation, the ECB will decide whether to launch a digital euro project. If a project is launched, policy decisions around the design and technical options will be reached by the Eurosystem, in consultation with European stakeholders including the European Commission. The Central Bank of Ireland, as a member of the Eurosystem, will fully participate in this important strategic initiative and engage with national stakeholders, including the Department of Finance, at appropriate points as this work progresses.

In my role as Minister for Finance I have not received any representations on the issue of a digital euro to date. To be of assistance, in my role as President of the Eurogroup I have received correspondence which referenced this issue:

- In October 2020 the ECB wrote in regard to the Digital Euro’s inclusion on the subsequently published Eurogroup work programme.

- In November 2020 an organisation called ‘Blockchain for Europe’ sent me the findings of research they had undertaken on digital payments.

- In January 2021 the ECB wrote noting that their public consultation on a digital euro had closed.

I welcome more detailed analysis, more information and more discussion on the potential development of a digital euro. My Department supports the examination of this issue and officials will work with colleagues in EU institutions to ensure that this concept is examined at an appropriate pace and all aspects are considered carefully and thoroughly.

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