The European Central Bank (ECB) is pushing for an explicit prohibition of unilateral cash exclusions by businesses, challenging the European Commission's proposal to merely monitor such practices. This move comes as a response to concerns over the safeguarding of the legal-tender status of euro banknotes and coins, particularly in light of declining cash acceptance across the eurozone.
The Dutch monetary authority has echoed these concerns, noting low cash acceptance in sectors such as cinemas, car parks, and pharmacies. In Latvia and Finland, there's been a significant drop in cash acceptance from 2019 to 2022, according to ECB documentation.
In parallel with these developments, legislation has been proposed to safeguard cash and establish a legal foundation for the digital euro. This is part of an ongoing project by the ECB, highlighting the shifting dynamics of currency usage within the region.
While it remains to be seen how these proposals will unfold, the ECB's stance underscores the importance of maintaining the status of cash as a legal tender amidst evolving payment practices. The proposed legislation also points to the ECB's efforts to balance the coexistence of physical and digital currencies in the eurozone economy.
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