Those views will also be discussed by the Euro Retail Payments Board. A market advisory group will take account of prospective users’ and distributors’ views of a digital euro during the investigation phase. It will also define a business model for supervised intermediaries within the digital euro ecosystem. The technical work on the digital euro with the European Commission will also be intensified.įinally, the investigation phase will assess the possible impact of a digital euro on the market, identifying the design options to ensure privacy and avoid risks for euro area citizens, intermediaries and the overall economy. The ECB will continue to engage with the European Parliament and other European policymakers throughout the project’s investigation phase. The project will also shed light on the changes to the EU legislative framework which might be needed and that will be discussed with, and decided by, European co-legislators. The investigation phase will examine the use cases that a digital euro should provide as a matter of priority to meet its objectives: a riskless, accessible, and efficient form of digital central bank money. It will involve focus groups, prototyping and conceptual work. Citizens, merchants and the payments industry will also be involved”, says ECB Board Member Fabio Panetta, Chair of the High-Level Task Force on a digital euro.ĭuring the project’s investigation phase, the Eurosystem will focus on a possible functional design that is based on users’ needs. “We will engage with the European Parliament and other European decision-makers and inform them regularly about our findings. In any event, a digital euro would complement cash, not replace it. This will not prejudge any future decision on the possible issuance of a digital euro, which will come only later. A digital euro must be able to meet the needs of Europeans while at the same time helping to prevent illicit activities and avoiding any undesirable impact on financial stability and monetary policy. The investigation phase will last 24 months and aim to address key issues regarding design and distribution. “Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money”. All of this has led us to decide to move up a gear and start the digital euro project”, says ECB President Christine Lagarde. In that time, we have carried out further analysis, sought input from citizens and professionals, and conducted some experiments, with encouraging results. “It has been nine months since we published our report on a digital euro.
Following the decision, the President of the Eurogroup Paschal Donohoe joined the meeting, congratulated the Governing Council and expressed his full support for the project.
The Governing Council of the European Central Bank (ECB) has decided today to launch the investigation phase of a digital euro project. No technical obstacles identified during preliminary experimentation phase.Design to be based on users’ preferences and technical advice by merchants and intermediaries.
Investigation phase of digital euro project to last 24 months.