ECB Digital Euro Next Steps Speech

On May 10, ECB issued speech presentation on digital euro progress.

  • ECB published the presentation associated with speech entitled Digital Euro: Stocktake and next steps, delivered by Piero Cipollone, Member of the Executive Board of ECB.
  • Presentation Overview
  • Presentation was split in four sections covering A European digital payment solution for any occasion - Rationale and key design choices, as well as What would a digital euro look like? Key design choices, both of which considered the reasons for a digital euro.
  • The third section was entitled Payment service providers at the forefront of distribution Public-private cooperation, confirming distribution of the digital euro would be carried out exclusively by payment service providers (PSPs), benefiting from open standards.
  • This section included considering safeguards included in the digital euro’s design, the holding limits, along with ongoing analysis of different banks and liquidity scenarios.
  • This public-private cooperation provides a platform for innovation for private providers to build value-added services, and avoid schemes that cover only part of euro area.
  • As part of process a digital euro rulebook would establish common standards to ensure pan-European reach and harmonized payment experience, giving market participants freedom to develop innovative solutions, and domestic solutions to reach euro area.
  • The Rulebook Development Group (RDG) will ensure digital euro is being defined with broad market involvement to represent intermediaries, retailers as well as consumers.
  • The final section was entitled Project timeline Next steps, confirming that the current preparation phase is designed to last from Nov. 2023, to Oct. 2025, before roll-out.
  • Current phase is designed to Finalize the scheme rulebook, Select service providers as well as Learn through experimenting, as well as Dive deeper into technical aspects
  • These include conducting further research into possible offline functions, developing a testing and roll-out plan for the future, to ensure a successful roll-out of digital euro.
  • The project will evolve in parallel with legislative process to ensure readiness in event a digital euro is needed in future, and a decision on whether to issue a digital euro will only be considered by ECB’s Governing Council, once the legislation has been adopted.

Regulators ECB
Entity Types B/D; Bank; CNSM; MSB; SIFI
Reference Sp 5/10/2024; Fintech
Functions Compliance; Financial; Legal; Operations; Product Administration; Product Design; Reporting; Risk; Sales Practices; Technology; Treasury
Countries European Union; Cross-Border
Category Central Bank
Products Banking; Cryptocurrency; Payments
Regions EMEA
Rule Type Guidance
Rule Date 5/10/2024
Effective Date 5/10/2024
Rule Id 211592
Linked to N/A
Reg. Last Update 5/10/2024
Report Section EU

Last substantive update on 05/14/2024