Lawmakers in the European Union (EU) are making progress in the development of regulations concerning two important topics: the “digital euro” and artificial intelligence (AI). Recent reports indicate that these matters are being actively addressed to ensure a balanced and secure approach.
According to a June 14 report by Bloomberg, the European Commission has released a draft proposal that highlights the potential requirements for the European Central Bank (ECB) regarding the use of a digital euro in relation to financial stability. The proposal suggests limiting its usage while still allowing non-risky transactions to proceed freely. These limits would apply across the entire eurozone, ensuring consistent guidelines.
The draft text also states that accepting a digital euro would become mandatory and be considered legal tender. However, in certain situations, parties may be able to decline the asset. This provision addresses potential concerns or special circumstances that may arise.
The introduction of digital currencies, including the digital euro and other central bank digital currencies (CBDCs), has sparked controversy within the crypto community due to their implications for government control. The level of control these currencies grant has been debated and scrutinized.
It is important to note that the draft proposal is subject to potential changes before its scheduled presentation on June 28. Recent reports also suggest that EU policymakers hold differing opinions on the necessity of a digital euro, indicating a lively ongoing discussion.
In a separate development, the European Parliament made an unrelated announcement on June 14 regarding advancing the Artificial Intelligence (AI) Act to the next stage. The Act received significant support, with 499 votes in favor, 28 against, and 93 abstaining. This step signifies the adoption of a negotiating position rather than the immediate enactment of the legislation.
If the Artificial Intelligence Act eventually becomes law, it would enforce restrictions on specific applications of AI. Notably, discriminatory uses of AI, such as certain predictive policing and biometric applications, would be explicitly prohibited. Additionally, AI systems with potential impacts on health, safety, the environment, election voting, or social media recommendations would be labeled as “high risk.”
Furthermore, the Act would introduce requirements for foundational model providers to assess product risks and register before entering the EU market. Providers of generative AI models would need to provide summaries of copyrighted training datasets and implement measures to prevent the generation of illegal content.
These developments reflect the EU’s commitment to addressing emerging technologies and ensuring a responsible and regulated approach to the digital euro and artificial intelligence. As discussions continue and potential changes are considered, it remains to be seen how these regulations will shape the future of the EU’s digital landscape.
