Day: 29 June 2023

The European Commission has set forth two proposals regarding the use of currency, with one being the possibility of a new digital form of the euro as a complement to cash.  

The European Commission (EC) has proposed two new ideas concerning the use of banknotes in the bloc.  

Though 60% of people surveyed still want the option to pay with cash when they choose, the reality is that increasingly the public is paying via digital means, either with cards or via apps. This trend, certainly bolstered by the pandemic, seems to be the way of the future, and as such, the EC has come up with two “mutually supportive sets of measures” so that people have both cash and digital payment options open to them.  

ACCESS AND ABILITY TO USE CASH 

The EC is focusing on acceptance and access when it comes to the use of cash in the eurozone. Acceptance of banknotes and coins is high throughout, but there are some establishments who have decided to go completely digital, thus preventing certain people access to goods and services. Additionally, the closure of several automatic teller machines has made access to cash increasingly difficult for some.  

To remedy these issues, the EC is suggesting the need to ensure cash is accepted everywhere and will monitor the situation to address the problem. It will reserve the right to step in if necessary to create a cash-friendly environment for all, notably for the elderly, who tend to prefer this method over cards or apps.  

A DIGITAL EURO?

The European Central Bank is looking into the possibility of introducing a digital euro. Following in the footsteps of several other central banks worldwide, this would give consumers an alternative EU-wide payment structure, building on today’s current options.  

The thought is that in addition to giving people more ways to pay, it would also strengthen the euro’s international role.  

The digital euro could be used like any other currency, working like a digital wallet where businesses and individuals could pay using this system anywhere in the EU. It would also be available for both online and offline payments, such as transactions made from device-to-device in an area without a solid internet connection, like in underground car parks or remote areas.  

The offline payments would enjoy a high level of privacy and data protection, like with online options.  

According to a report from the EC, “[This form of currency] would allow users to make digital payments while disclosing less personal data than they do today when making card payments, just like when paying with cash, and the same as what they disclose when they take cash out of an ATM.” 

Banks and other payment service providers would distribute this digital version and basic services relating to it free of charge. Most merchants, with the exception of certain micro-businesses who would find setting up a new infrastructure cost prohibitive, would be obliged to accept it as legal tender.  

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Photo source: Rodion Kutsaiev for Unsplash

The Monaco government has made some changes to the subsidies it offers residents who purchase electric vehicles, rewarding less-emitting vehicles and increasing the bonus for electric two-wheelers.

Monaco has been offering subsidies for the purchase of ecological vehicles since 1994. Half of the government’s own fleet is electric.

Now, as of 26th June, the government is changing its support system to help fund the most ecological vehicles purchased by individuals and professionals.

In order for people to receive a government subsidy for their private vehicle, it must now be electric or an electric-petrol hybrid with a value of less than €60,000, base price including tax.

The amount of aid also varies according to the level of CO² emissions, falling into three categories:

– vehicles emitting less than 21 g/km of CO² benefit from an aid of 30% of the base price including tax of the vehicle, capped at €10,000;

– vehicles emitting 21 to 50g/km of CO² benefit from a fixed bonus amounting to €5,000;

– and those emitting 51 to 98 g/km of CO² benefit from a fixed bonus of €1,500.

An incentive system has also been put in place for professionals and associations who acquire, as part of their activity, better performing electric or electric-petrol hybrid vehicles. For the acquisition of light utility vehicles ≤3.5 tonnes emitting less than 21 g/km of CO², an additional fixed aid of €3,000 is added to the bonus for purchase amounting to 30%, capped at €10,000, of the price of the vehicle.

For the purchase of electric goods trucks >3.5 tons emitting less than 21 g/km of CO², a premium amounting to 20% of the price of the vehicle, capped at €40,000, is applied.

The government also wants to boost the use of electric two-wheelers in Monaco by increasing the subsidy to 40% of the price of the vehicle, capped at €4,500.

People wanting to buy an electric bicycle will also receive a flat-rate cash back of €400, provided that the purchase is made from a merchant located in the European Union and that the delivery is made in Monaco.

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Photo credit: Eren Goldman on Unsplash