The European Parliament adopted a law on cryptocurrency wallets

The European Parliament has adopted a draft law on digital wallets, which aims to create a European digital wallet that could compete with the identification systems provided by major technology companies such as Google and Apple.

European Digital Identity is intended to provide a legal framework for the creation of a system of national digital wallets interoperable across the EU, where citizens can access all documents, from birth certificates to driver’s licenses. The new bill was passed by 418 votes to 103.

As noted in the European Parliament, the scheme will allow EU citizens to identify and authenticate themselves online without having to resort to commercial providers. This practice raises concerns about trust, security and privacy. Under the new law, users will be able to gain full control over their data and decide what information to share and with whom.

«Today's vote brings us one step closer to a secure digital identification system that gives digital wallet users full control over their data,» said European Parliament rapporteur Romana Jokovic.

As a reminder, retailers and wholesalers doing business in the euro area will have to accept the digital euro if the EU recognizes CBDC as legal tender. «The definition of legal tender would mean that merchants would have to ensure that they accept payment in the digital euro. This is necessary to increase the network effect and potential impact on the distribution of the digital asset,» the Eurogroup secretariat said in a document presented to G-20 finance ministers on March 13.