The digital euro in the making - legal aspects of the Commission’s Single Currency Package

Digitalization has become a pervasive phenomenon reshaping key sectors of society, including public administration, education, and healthcare. Its impact is particularly pronounced in the financial sector, where the emergence of Central Bank Digital Currencies (CBDCs) has generated intense debate. While several countries, such as China and Sweden, have taken a pioneering role in testing and introducing CBDCs, the discussion has now gained momentum within the euro area. In this context, the European Central Bank has begun exploring the feasibility of a digital euro, and in June 2023 the European Commission presented a proposal for a Regulation on the establishment of the digital euro as part of the Single Currency Package. This article analyses the draft regulation and the other elements of the Single Currency Package, focusing on the legal issues involved. It argues, inter alia, that the EU has the competence to introduce a digital euro.