MEP Stefan Berger steps down from digital euro project to avoid suspicions
Date: 2024-12-13 Author: Henry Casey Categories: IN WORLD
Stefan Berger, a spokesman for Germany's European People's Party (EPP), announced his decision in an interview with POLITICO. He stressed that "the time has come to hand over this job to someone who does not raise suspicions of deliberately delaying the negotiations and who is not connected to Germany." EPP economic policy chief Markus Ferber intends to choose Berger's successor within a week.
The digital euro, which is intended as a virtual alternative to traditional coins and banknotes, aims to improve payments in the eurozone and reduce reliance on foreign companies such as Visa and Mastercard. However, the project has faced resistance, particularly in Germany, where banks and citizens have expressed concerns about possible financial risks and technical details. Berger himself has also voiced concerns that the launch of a digital euro could lead to a run on funds and hurt smaller banks.
Despite his active involvement in the drafting of MiCA, a bill that set clear rules for crypto companies in the EU, Berger has faced difficulties in promoting the digital euro. While MiCA was hailed as a significant step forward, the digital euro has sparked debates over privacy and technical aspects.
Berger has proposed a phased rollout of the digital euro, starting with wholesale transactions. However, his critics have accused him of missing deadlines and stalling, leading to calls for his resignation earlier this year.
The European Central Bank (ECB) continues to test the capabilities of the digital euro, with plans for a pilot launch in the coming years. However, in a recent progress report, the ECB hinted that it may abandon offline payments of the digital euro if it fails to reach an agreement with smartphone makers on secure chip integration.
