Digital Euro: Issues in Creation of Legal and Regulatory Framework

Abstract

This research represents the analysis of the phenomenon of a digital euro as the type of electronic money and its legislative frameworks and regulations, by studying current legislative constitutional frameworks of the EU and by examining the compliance of a digital euro with the European Central Bank Law, the Monetary Law, by finding the balance between privacy and the AML/CFT requirements, and by legally managing possible risks to the freedom of banks to conduct a business. As the result, the legality of the issuance of a digital euro by the ECB is explored and the recommendations about the legal framework addressing both practical and legal matters arising from the introduction of a digital euro are delivered.