"Paying interest on or surcharges for using a digital euro would be banned under a draft law seen by CoinDesk, and set to be proposed by the European Commission on June 28."
“The digital euro shall be available for both online and offline digital euro payment transactions as of the first issuance of the digital euro,” said the text viewed by CoinDesk. The level of privacy for offline, face-to-face use should be “comparable” to withdrawing banknotes at an ATM, it said.
"The CBDC “shall not be programmable,” the text added, following concerns that giving the ability to control how given funds are used could limit the freely usable nature of fiat currency."
"The text also sets out measures to stop people using digital euro accounts as alternatives to commercial bank savings. Holdings cannot bear interest, and the ECB will be able to impose further controls. Panetta has already said individuals should be limited to holding about 3,000 euros ($3,250) to ensure it is primarily used for day-to-day payments."
"For offline transactions, “neither the European Central Bank nor the payment services providers will gain access to personal transaction data,” though banks who distribute the currency can send financial crime authorities details of how accounts are funded if they suspect money laundering."
The EU is one of several jurisdictions worldwide, including the U.S. and U.K., considering whether to issue a central bank digital currency (CBDC).
"As legal tender, the draft law says, shops would have to accept digital euro and not impose any surcharge for using it, unless they are very small businesses or have some other good-faith reason for declining, such as a power outage."