EC Legal Tender Definitions Fall Short

The European Commission (EC) has published proposals on the legal tender status of cash and a possible future European Central Bank Digital Currency.

Cash: Regarding cash, it says, ‘Today’s proposal aims to safeguard the continued and widespread acceptance of cash throughout the euro area and will also ensure that people have sufficient access to cash to be able to pay in cash if they so wish.’ 

It also says, ‘The proposal will ensure that everyone in the euro area is free to choose their preferred payment method and has access to basic cash services. It will ensure the financial inclusion of vulnerable groups who tend to rely more on cash payments, such as older people.’ 

It will achieve all this by stating, ‘Member states will need to ensure widespread acceptance of cash payments, as well as sufficient and effective access to cash. They will need to monitor and report on the situation and take measures to address any problems identified. The Commission could step in to specify measures if needed.’