Digital Euro Costs Difficult to Predict, Says Finance Minister

By Netvora Tech News

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According to Minister of Finance Heinen, it is challenging to accurately estimate the costs associated with the introduction of a digital euro. This was discussed at a recent meeting of the Eurogroup, an informal gathering of finance ministers from the eurozone.

Ambitious Plans

The Eurogroup meeting focused on several key topics, including the digital euro. Several member states emphasized the need to make progress on the digital euro, although the minister did not specify which countries were driving this push. Some countries also highlighted the potential benefits of a digital euro, including enhanced resilience of European payment infrastructure and increased autonomy for the continent.

Compensation Model

The meeting also touched on the compensation model for a digital euro. This refers to the fees that banks and payment service providers may be entitled to for their role in distributing a digital euro. According to Heinen, several options are being explored for the compensation model, including linking it to existing digital payments and pricing digital euro transactions based on actual costs.

Challenges Ahead

As a new form of currency, it is difficult to predict the costs associated with a digital euro. Heinen notes that the compensation model for the digital euro will need to be based on the actual costs of digital euro transactions in the long term.

Netherlands' Position

The Netherlands is advocating for a proportional compensation model that is suitable for both retailers, payment service providers, and consumers. Heinen emphasizes that the compensation model will need to be based on the actual costs of digital euro transactions in the long term.

Next Steps

The next meeting of the Eurogroup is scheduled for next month, where further discussions on the digital euro are expected to take place.