On the proposal for a regulation of the European Parliament and of the Council on the legal tender of euro banknotes and coins

Amendment 1

AMENDMENTS BY THE EUROPEAN PARLIAMENT*

to the Commission proposal

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2023/0208 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the legal tender of euro banknotes and coins

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the functioning of the European Union and in particular Article 133,

Having regard to the proposal form the European Commission,

Having regard to the opinion of the European Central Bank,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) According to Article 3(1), point (c), of the Treaty on the Functioning of the European Union (TFEU), the Union has exclusive competence as regards monetary policy for the Member States whose currency is the euro.

(2) Pursuant to Article 128(1) of the Treaty on the Functioning of the European Union and Article 10 of Council Regulation (EC) No 974/98 the euro banknotes are to be the only banknotes which have the status of legal tender in Member States whose currency is the euro. Pursuant to Article 11 of Regulation (EC) No 974/98, euro coins shall be the only coins which have the status of legal tender in the Member States whose currency is the euro.

(3) Commission Recommendation on the scope and effects of legal tender of euro banknotes and coins provides for a common definition of legal tender of euro banknotes and coins.

(4) In a judgment of 26 January 2021, the Court of Justice of the European Union clarified that the concept of ‘legal tender’ mentioned in Article 128(1) TFEU is a concept of Union law that must be given an autonomous and uniform interpretation throughout the EU. Secondly, the Court held that the concept of ‘legal tender’ of a means of payment denominated in a currency unit signifies that “that means of payment cannot generally be refused in settlement of a debt denominated in the same currency unit, at its full face value, and without surcharges for the payer, with the effect of discharging the debt”. Thirdly, the Court stated that an obligation to accept euro banknotes and coins may, in principle, be restricted by the Member States whose currency is the euro for reasons of public interest and pursuant to their competences outside of the area of monetary law and policy and of other exclusive Union competences, provided those restrictions are justified by a public interest objective and proportionate to it.

(5) The acceptance of euro banknotes and coins tendered as means of payment can exceptionally be refused if the refusal is made in good faith, based on legitimate grounds and concrete circumstances, which are beyond the control of the payee, and if the refusal is proportionate. For example, the refusal can be justified if for the settlement of a monetary debt the tendered euro banknote is disproportionate compared to the amount owed to the payee, such as the tendering of a two hundred euro banknote for the settlement of a debt of less than five euro. In accordance with Council Regulation 974/98, except for the issuing authority and for those persons specifically designated by the national legislation of the issuing Member State, no party should be obliged to accept more than 50 coins in any single payment. Other legitimate grounds should include exceptional cases such as when the payee has no change available at the moment when cash is tendered in payment, or situations where the characteristics of bankotes or coins tendered by the payer do not comply with counterfeiting prevention or anti-money laundering and combating the financing of terrorism financing standards.Contractual requirements or technical restrictions imposed by third parties should not constitute legitimate grounds for the refusal of euro banknotes and coins.

(5a) The acceptance of euro banknotes and coins tendered as means of payment should also be able to be refused where, prior to payment, the payee has agreed with the payer on a different means of payment. Where there is any doubt as to the existence of such an agreement, the burden of proof should always lie with the payee. Lastly, banknotes and coins tendered as means of payment should be able to be refused where the point of sale is an unmanned point of sale, in view of the mechanical and security constraints inherent in such points of sale. Without prejudice to the need to have access to essential services for all citizens, in some cases, unmanned cashless points of sale can prove to be the most economical solution to offer services, especially where the provision of cash would produce disproportionate costs given security and accessibility reasons, which could hamper the offering of services.

(6) In order to ensure that the principle of mandatory acceptance of payments in euro banknotes and coins is not effectively undermined by widespread and structural refusals of cash payments, payees who are subject to the mandatory acceptance of euro banknotes and coins should not unilaterally exclude payments in cash through contractual terms that have not been individually negotiated. That includes commercial practices which are based in the context of a pre-formulated standard form contract or which have been drafted in advance, such as ‘no cash’ signs, that have the object or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro. Therefore, Member States should regularly monitor the level of unilateral ex ante exclusions of payments in cash when payments are performed in physical premises throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, on the basis of common indicators which allow for comparisons between the Member States. If in light of their assessment acceptance of payments in cash is ensured on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continue monitoring the situation. If a Member State concludes that ex ante unilateral exclusions of cash undermine the mandatory acceptance of payments in euro banknotes and coins in all or part of its territory, that Member State should take immediate effective and proportionate measures to remedy the situation, such as a prohibition or restrictions on ex ante unilateral exclusions of cash in all or parts of its territory, for example in rural areas, or in certain sectors which are deemed essential such as post offices, supermarkets, pharmacies or healthcare, or for certain types of payments which are deemed essential.

(6a) Member States should provide payers and payees with clear information on the channels and effective remedies they have at their disposal to lodge complaints with competent national authorities concerning cases of unlawful refusal to accept cash and insufficient and ineffective access to cash.

(7) With a view to an effective implementation of their obligation to ensure ▌effective access to cash, Member States should regularly monitor the level of access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban areas, in particular sparsely populated areas, paying particular attention to the needs of vulnerable groups, such as older persons, persons with disabilities, people with low income or low digital skills and unbanked persons, on the basis of common indicators which allow for comparisons between the Member States. Common indicators could include factors that affect access to cash, such as density of cash access points (such as ATM’s, over-the-counter services, cash-back agrements and mobile offices) in relation to population, withdrawal and deposit conditions, including fees, the existence of different networks with different access modalities for customers, urban-rural and socio-economic variations, and access difficulties for certain population groups. If in the light of their assessment access to cash is deemed ▌effective on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continue monitoring the situation. If a Member State concludes that access to cash is not ▌effective in all or part of its territory, or is at risk of deteriorating in the absence of action, appropriate remedial measures should be taken to remedy the situation, such as geographic access requirements on payment service providers providing cash withdrawal services to maintain cash services at a sufficient number of their branch offices where they conduct business, or through an appointed agent for online only credit institutions, or maintain a sufficient density of automated teller machines (ATMs) where they conduct business taking into account a good geographic spread in relation to population, also taking into account possible pooling of ATMs. Other remedial measures could include recommendations addressed to non-credit institutions, such as independent ATM operators, retailers or post offices, encouraging to complement the cash services of banks. Member States should also consider ways of promoting operational efficiency, including through voluntary guidelines or partnership agreements with payment service providers.

(7a) Member States should establish cash resilience plans to ensure effective access to cash in situations where there is widespread and severe disruption of the continuity of digital means of payments, or where there is at least a credible and imminent risk of such disruption, affecting, in whole or in a part, the territory of a Member State or several Member States of the euro area. Those plans should include a combination of measures for different scenarios leading to such a disruption, including natural or human-made disasters, and provide for risk mitigation solutions.

(8) The Commission should adopt guidelines to define ▌a set of common indicators ▌, which would allow the Member States to effectively monitor and assess the acceptance of payments in cash and access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. In view of the preparation of those guidelines, the Commission should consult the European Central Bank and national central banks.

(9) The Commission should, after consultation of the European Central Bank, be empowered to adopt implementing acts addressed to a specific Member State when ▌, in spite of the remedial measures proposed in the annual report sent by that Member State, ex ante unilateral exclusions of cash are undermining the principle of mandatory acceptance of payments in euro banknotes and coins and/or where access to cash is not ▌effective. Such an implementing act could require the Member State concerned to take measures such as those outlined in recitals 7 and 8, or measures that have been considered effective in other Member States in ensuring that the principles of mandatory acceptance of payments in cash or ▌effective access to cash, are not undermined.

(10) In accordance with the principle of sincere cooperation, the Commission, the European Central Bank and the designated national competent authorities with the required powers as regards acceptance of payments in cash and access to cash, and over the cash-related market activities of the cash industry should closely collaborate on issues related to acceptance of payments in cash and access to cash. A regular dialogue among these institutions and authorities, based notably on the annual reports of Member States to the Commission and the European Central Bank, should aim at identifying cases of widespread ex ante unilateral exclusions of cash and insufficient access to cash in specific national territories or regions. It would also aim at designing and adopting remedial measures that Member States should adopt as a means to comply with their obligations to ensure acceptance of cash and ▌effective access to cash.

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(12) In order to ensure uniform conditions for the provisions on the acceptance of payments in cash and sufficient and effective access to cash, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. The examination procedure should be used for the adoption of the implementing acts ▌ addressed to individual Member States which in certain circumstances may need to adopt appropriate measures which would reflect the specificities of their national territories, regions and urban areas, in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

(13) This Regulation ensures full respect for the fundamental right of freedom to conduct a business and the fundamental right of consumer protection enshrined in Article 16 and 38 of the Charter of Fundamental Rights of the European Union respectively. This Regulation concerns the preferred payment method of the currency that has legal tender status, which payers legitimately may choose to settle their debts. Thus, the measures in this Regulation only concern the way enterprises receive payments. The interference with those fundamental rights is therefore indirect and very limited. It is justified by the general interest objective of ensuring the effectiveness of legal tender, and is proportionate to this objective.

(14) The share of cash payments compared to electronic payments could vary across certain vulnerable groups including older age groups, persons with disabilities, and people with limited digital skills ▌, lower income levels and unbanked persons. This proposal is consistent with the European Accessibility Act, which covers automated teller machines (ATMs). Furthermore, financially excluded people, such as the unbanked, asylum seekers and migrants, who may not be able or willing to use means of payment supplied by the private sector, rely on cash as their payment method. Cash is considered to provide for a clear overview of expenses, with high degrees of ease of use, speed, safety and privacy. These vulnerable groups are more at risk of losing their access to a method of payment if their access to cash deteriorates. Thus, this Regulation would aim to preserve financial inclusion of vulnerable groups with a dependency on cash payments by ensuring that everyone in the euro area would be free to choose the preferred payment method and has access to basic cash services, while supporting Member States in continuing their policy efforts to promote digital financial inclusion, for example through measures aimed to increase financial and specifically digital finance literacy in education and training systems, as well as to address gaps in digital infrastructure, including in rural areas.

(15) In accordance with the principle of proportionality, it is necessary and appropriate for the achievement of the basic objective of ensuring the acceptance of cash and access to cash to lay down the necessary rules. This Regulation does not go beyond what is necessary in order to achieve the objectives pursued, in accordance with Article 5(4) of the Treaty on European Union.

Article 1

Subject matter

This Regulation applies in the Member States whose currency is the euro. It lays down detailed rules on the scope and effects of the legal tender of, and access to, euro banknotes and coins, as provided for, respectively, by Article 128(1) TFEU and by Article 11 of Regulation (EC) No 974/98, in order to ensure its effective use as a single currency.

Article 2

Scope

1. This Regulation applies, in the Member States whose currency is the euro, to the settlement of pecuniary debts in so far as they are to be settled in cash, in whole or in part, where a payment obligation exists in accordance with the applicable law or established legal practices. To ensure the effectiveness of the legal tender of cash, this Regulation applies also to ex ante unilateral exclusion of payments in cash and to the access to cash.

2. This Regulation shall not apply to payments for goods or services purchased at a distance, including online.

Article 3

Definitions

For the purposes of this Regulation, the following definitions apply:

1. ‘cash’ means euro banknotes and coins;

2. ‘cash industry’ means credit institutions offering payment accounts to customers and cash service providers involved in the managing of the distribution and circulation of euro banknotes and coins;

3. ‘credit institution’ means a credit institution as defined in Article 4 (1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council;

4. ‘ex ante unilateral exclusions of cash’ means a situation when a retailer or service provider unilaterally excludes cash as a payment method for example by introducing a ‘no cash’ sign or by stipulating that exclusion in, or using, a pre-formulated, non-negotiable, standard form contract, creating a situation where the payer and payee do not freely agree to a means of payment for a purchase;

5. ’payer’ means any person who makes a payment in euro cash;

6. ’payee’ means any person who is the intended recipient of funds which have been the subject of a payment transaction in euro cash;

7. ‘face value’ means the denomination in euros of a euro banknote or coin, as printed on that banknote or minted on that coin;

8. ‘enterprise’ means an entity engaged in an economic activity, irrespective of its legal form, including partnerships or associations regularly engaged in an economic activity;

8 a. ‘unmanned point of sale’ means a physical device or system via which goods or services are provided directly to the payer by or on behalf of the payee in return for payment, without the presence of any staff or agents of the payee, and includes vending machines, ticketing machines, parking meters, self-service fuel and charging stations, and other similar systems.

Article 4

Legal tender

1. The legal tender status of euro banknotes and coins shall entail their mandatory acceptance, at full face value, with the power to discharge from a payment obligation.

2. In accordance with the mandatory acceptance of cash, the payee shall not refuse euro banknotes and/or coins tendered in payment to comply with that obligation.

3. In accordance with the acceptance at full face value of cash, the monetary value of euro banknotes and/or coins tendered in settlement of a debt shall be equal to the amount in euro indicated on the banknotes and/or coins. Surcharges on the settlement of debt with euro banknotes and coins shall be prohibited.

4. In accordance with the power to discharge from a payment obligation, a payer shall be able to discharge from a payment obligation by tendering euro banknotes and coins to the payee.

Article 5

Exceptions to the principle of mandatory acceptance of euro banknotes and coins

1. By way of derogation from Article 4(2), a payee shall be entitled to refuse euro banknotes and coins in any of the following cases:

(a) where a refusal is made in good faith and where such refusal is based on legitimate ▌grounds in line with the principle of proportionality in view of concrete circumstances beyond the control of the payee;

(b) where, prior to the payment, the payee has agreed with the payer on a different means of payment, without prejudice to Article 5a;

(ba) where the goods or services are provided to the payer at an unmanned point of sale, in view of the mechanical and security constraints inherent in such points of sale, taking into account the need to have access to essential services as defined in Directive (EU) 2022/2557 of the European Parliament and of the Council.

For the purposes of the first subparagraph, point (b), the payee shall bear the burden of proof to establish that such an agreement existed in a particular case.

2. For the purposes of paragraph 1, point (a), the burden of proof to establish that legitimate grounds exist in a particular case and that the refusal to accept euro banknotes and coins was proportionate shall lie with the payee.

For the purposes of the application of paragraph 1, point (a), such legitimate grounds may include:

i. Regarding high denomination banknotes, if the value of the banknote tendered is manifestly disproportionate compared to the value of the amount to be settled.

ii. In exceptional cases, if the enterprise has no change available at the moment where the cash is tendered in payment, or if there would be not enough change available as a result of that payment for an enterprise to carry out its normal daily business transactions.

iii. Situations where, prior to payment, the payee realises that the characteristics of the banknotes or coins tendered by the payer do not comply with Council Regulation (EC) No 1338/2001 or are not fit for circulation according to the decision of the European Central Bank of 10 December 2009 on the approval of the volume of coin issuance in 2010.

2a. Article 4 is without prejudice to any measure taken by the payer or the payee in order to comply with Union law on the prevention of money laundering and terrorist financing.

Article 5a

Prohibition of ex ante unilateral exclusions of payments in cash

Any contractual terms relied on by payees subject to the obligation to accept euro banknotes and coins, which have the object or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro, shall be negotiated individually. Such contractual terms shall not be regarded as having been negotiated individually where they have been drafted in advance and where the payer has not been able to influence their substance, particularly in the context of a pre-formulated standard form contract.

The payees referred to in the first subparagraph shall not engage in commercial practices (e.g. ‘no cash’ signs) that have the object or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro.

Contractual terms and commercial practices prohibited pursuant to the first and second subparagraphs shall not be binding on the payer.

Article 6

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Article 7

Acceptance of payments in cash

1. In order to ensure the acceptance of cash in accordance with Article 4(2), Member States shall monitor on a regular basis the acceptance of payments in cash and the compliance with the prohibition of ex ante unilateral exclusions of payments in cash referred to in Article 5a throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, and shall take immediate remedial measures on the basis of the common indicators drafted in accordance with the Commission guidelines adopted pursuant to Article 9(2)and shall assess the situation.

2. Member States shall notify the results of their monitoring and assessment of the situation, and effects of remedial measures, as regards the level of acceptance of payments in cash in accordance with Article 9(3).

3. If a Member State considers, on the basis of the monitoring and assessment referred to in paragraph 1 of this Article, that the level of acceptance of payments in cash in their territory or parts thereof undermines mandatory acceptance of euro banknotes and coins established in this Regulation, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

Article 8

Access to cash

1. Member States shall ensure ▌effective access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, paying particular attention to the needs of vulnerable groups, such as older persons, persons with disabilities, people with low income or low digital skills and unbanked persons. In order to ensure ▌effective access to cash, Member States shall monitor access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated areas, on the basis of the common indicators drafted in accordance with Article 9(2) and shall assess the situation continuously.

2. Member States shall notify the results of their monitoring and assessment of the situation as regards access to cash in accordance with Article 9(3).

In carrying out the monitoring and assessment referred to in paragraph 1, Member States may be guided, inter alia, by the availability and accessibility of cash services, including the presence of ATMs and over‑the‑counter services, cash-back agreements and mobile offices, with special attention to their geographical distribution, opening hours, affordability and compliance with accessibility requirements.

3. If a Member State considers, on the basis of the monitoring and assessment referred to in paragraph 1, that ▌effective access to cash is not ensured, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

3a. In order to ensure effective access to cash in a sustainable and cost-effective manner, and with a view to avoiding unnecessary burdens on payment service providers, Member States shall consider the need to promote operational efficiency, including through voluntary guidelines, partnership arrangements with payment service providers, or shared infrastructures. In that context, Member States may take measures to encourage retailers to provide cash-back and cash-in services, without any purchase obligation, at points of sale as a means to enhance cash circulation, with monitoring of such measures integrated into the annual reports under Article 13.

3b. Member States may take adequate measures to raise public awareness about the right and benefits, such as security or resilience, of using cash as legal tender and the available means to access cash services, with a focus on persons with disabilities, functional limitations or limited digital skills, and the elderly.

Article 8a

Resilience of cash

Member States shall ensure that a cash resilience plan or a combination of measures is established in order to ensure effective access to cash in situations where there is widespread and severe disruption of the continuity of digital means of payments or a credible and imminent risk of such disruption that affects or threatens to affect, in whole or in part, a Member State or the euro area. The resilience plan or the combination of measures, as applicable, shall include different scenarios, including natural or human-made disasters, and address the risk of each scenario.

Article 9

Procedural aspects

1. With a view to implementing the obligations set out in Articles 7, 8 and 8a, Member States shall each designate one or more national competent authorities with the required powers as regards acceptance of payments in cash and access to cash, and over the cash-related market activities of the cash industry. Those authorities shall have the necessary resources and powers to enable them to receive complaints from citizens about possible infringements of this Regulation. Those authorities shall also ensure that the channels for complaints are easily accessible, transparent and clearly understandable for citizens and businesses.

2. For the purposes of Articles 7 and 8, the Commission shall jointly adopt guidelines to define a set of common indicators to be used by Member States ▌to monitor and assess the acceptance of payments in cash and access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. Those guidelines shall be published … [X months after the entry into force of this Regulation] in accordance with the advisory procedure referred to in Article 11. When preparing those guidelines, the Commission shall consult the European Central Bank and national central banks.

3. The designated national competent authorities shall notify the results of their monitoring and assessment of the situation as regards the levels of acceptance of payments in cash and access to cash, giving grounds and data for their assessment, in an annual report to be addressed to the Commission and the European Central Bank as referred to in Article 13. The designated national competent authorities shall publish those reports in a manner appropriate to ensure transparency and public accountability.

4. If a Member State considers that the level of acceptance of payments in cash undermines mandatory acceptance of euro banknotes and coins or that ▌effective access to cash is not ensured, it shall take remedial measures without imposing excessive financial or operational costs on market participants. The Member State shall indicate in its annual report the remedial measures, including any enforcement mechanisms, that it commits to take or has taken in order to comply with the obligations set out in Articles 7 and 8. The remedial measures shall contain a binding timeline and clear milestones and shall enter into force without undue delay.

5. The Commission shall examine the annual reports in close consultation with the European Central Bank. If the remedial measures proposed by a Member State pursuant to paragraph 4 appear insufficient, or if the Commission considers that the acceptance of cash payments or ▌effective access to cash in a Member State is not in compliance with the obligations set out in Articles 7 and 8 despite the remedial measures proposed in the annual report, the Commission shall adopt implementing acts providing for adequate and proportionate measures that shall be adopted by the Member State concerned within the deadline laid down in the respective implementing act. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 11. When preparing those implementing acts, the Commission shall consult the European Central Bank.

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Article 11

Committee procedure

1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 12

Penalties

National laws, regulations and administrative provisions shall lay down the rules on penalties ▌ applicable to infringements of this Regulation and the administrative sanctions and other administrative measures in respect of the breaching or circumvention of this Regulation. Member States shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. The respective national regulations for the acceptance of coins shall apply. Member States shall, within one year after the entry into force of this Regulation, notify the Commission of those rules and of those measures and shall notify it, without delay, of any subsequent amendment affecting them.

Article 13

Annual reports

1. Member States shall submit on an annual basis a report to the Commission and the European Central Bank including information on the following aspects:

(a) the state of play concerning exceptions to the principle of mandatory acceptance pursuant to Article 5;

(b) detailed data and assessment of the situation in the Member State as regards acceptance of payments in cash and access to cash, and the remedial measures to be taken pursuant to Articles 7 and 8;

(c) the implemented penalties including financial penalties and non-criminal fines pursuant to Article 12.

2. The first annual report shall be submitted one year after the entry into force of this Regulation. Subsequent annual reports shall be submitted yearly after the date of the entry into force of this Regulation.

3. The Commission shall examine the annual reports in close consultation with the European Central Bank.

3a. All statistical analyses on the acceptance and availability of cash which are presented in detail or in summary form in the annual reports shall be freely available online in an official language of the Member State concerned and also in English. The methods for the statistical collection of that information and for its evaluation shall be explained in detail.

All complaints submitted to the competent national supervisory authority referred to in Article 9 shall be listed in a manner that complies with data protection requirements, including a sufficient description of the outcome of the subsequent investigation and, in the event of an infringement, the extent to which this Regulation was successfully enforced. That information shall be made available on an EU website.

Article 14

Duty of Member States to inform about remedies

Member States shall provide payers and payees with clear information on the channels and effective remedies they have at their disposal to lodge complaints with the competent national authority about cases of unlawful refusal to accept cash and insufficient and ineffective access to cash. The information shall be easily accessible, comprehensible and available in English as well as in an official language of the Member State concerned.

Article 15

Interaction between euro banknotes and coins and the digital euro

1. Euro banknotes and coins and the digital euro shall be convertible into each other at par.

2. Payees of a monetary debt denominated in euro shall accept payments in euro banknotes and coins according to the provisions of this Regulation, irrespective of whether they accept payments in digital euro in accordance with Regulation [XXX on the establishment of the digital euro]. Where the acceptance of euro banknotes and coins and the digital euro is mandatory in accordance with the provisions of this Regulation and Regulation (XXX on the establishment on the Digital Euro), the payer is entitled to choose the means of payment. The establishment of the digital euro shall not diminish the relevance of euro cash. Both forms of public money shall coexist and offer citizens complementary means of payment, ensuring choice, resilience and universal access.

Article 15a

Amendment to Directive (EU) 2020/1828

In Annex I to Directive (EU) 2020/1828, the following point is added:

‘(70) Regulation (EU) 20../…. of the European Parliament and of the Council on the legal tender of euro banknotes and coins (OJ L[…], [……….], [p. ..]).’

Article 16

Review

By [date-five years after the entry into force], the Commission shall carry out a review on the operation and effects of this Regulation and submit a report to the European Parliament and to the Council. Member States shall provide the Commission with necessary information for the preparation of that report. The report shall be accompanied by a legislative proposal, where appropriate.

Article 17

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties.