Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
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210. To ask the Minister for Finance for an update on Ireland's preparedness for the introduction of the digital euro; and if he will make a statement on the matter. [8740/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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On 28 June 2023, the European Commission put forward a proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the establishment of the digital euro. Work on the draft regulation commenced under the Spanish Council Presidency and is following the normal legislative process through the Council Working Group and the European Parliament. The legislation is still at the first step of the process whereby the Council and the European Parliament separately agree their general approaches known as the first reading. If the first readings differ, trilogues will be held to reach a comprise. Once both institutions agree on a final text, known as the second reading, the regulation is formally adopted and becomes directly applicable in all Member States.

The Commission's digital finance strategy, issued in September 2020, featured the digital euro as part of the retail payment strategy. In parallel, the European Central Bank published its Report on a digital euro, as a first step to gather views on a possible design. On 14 July 2021, the ECB officially started its investigation phase for the digital euro project. Subsequently, the ECB has concluded its investigation phase with a final report on 18 October 2023 and immediately moved on to the preparation phase. This phase is set to run for at least two years with the option to extend as necessary. It should be noted that the launch of a preparation phase does not represent a decision to issue a digital euro, such a decision will only be made by the ECB Governing Council once the legislative process has concluded and if the regulation is formally adopted by the European Parliament and Council.

Officials in the Department of Finance attend Council Working Party meetings on the proposal and contribute to discussions at those meetings. My Department and the Central Bank of Ireland are working closely on the proposed regulation.

The Central Bank via its representation on the ECB’s Governing Council, Digital Euro High-Level Task Force, the Project Steering Group (PSG), and other technical workstreams below the PSG, support the Eurosystem’s Digital Euro Project. The Central Bank is undertaking extensive work on Ireland’s preparedness for the potential introduction of a digital euro. Officials are also meeting with key stakeholder’s including representatives of the Irish banking and financial services sector and other government departments.