It could facilitate crossborder transactions between financial institutions using different currencies, with the potential to cut costs and increase speed. In this context, the work of the G20 as well as the G7 on interoperability of CBDCs is of utmost importance as well.
Only through a collaborative approach can we harness the full potential of CBDCs, mitigate potential risks and ensure their compatibility with existing financial systems. 3.4 A solid legal framework A solid legal framework will also be vital. The European Commission two days ago presented a long-awaited legislative proposal. One aspect is that a digital euro would also be given the status of legal tender.