The European Central Bank (ECB) has published a new report on the progress of its investigation into the possible launch of a digital euro. The research will continue next year with the regulator planning to make a decision whether to proceed to the realization of the project in the fall of 2023.
ECB to Develop Rules for Digital Euro Distribution Through Intermediaries
The eurozone’s central bank has released a second report on the advance of the investigation part of its project to issue a digital version of the common European currency. The document presents a group of style and distribution options, recently endorsed by its Governing Council, and defines the roles of the ECB and market participants within the digital euro ecosystem.
Just like banknotes nowadays, a digital euro would be a liability on the balance sheet of the Eurosystem, the financial authority of the eurozone consisting of the ECB and also the national central banks of the member states. Therefore, the Eurosystem should be fully control over the digital euro issuance and settlement, the regulator explains.
Supervised intermediaries, like credit establishments and payment service providers, will distribute the digital euro to finish users — individuals, merchants, and businesses — open digital euro wallets, process payments and provide other related services. Conducting know-your-customer and anti-money laundering checks are a part of their responsibilities, too. The ECB additionally emphasizes:
Paying in digital euro should always be an option, irrespective of the entity with which end users open digital euro accounts or wallets and of their country of origin.
Further, {the european|the ecu|the eu} central bank assures that the look of the digital euro would minimize its involvement within the process of user knowledge. “The Eurosystem wouldn't be ready to infer what proportion digital euro any individual end user holds nor to infer end users’ payment patterns,” the monetary authority elaborated.
The investigation phase of the digital euro project was launched in 2021. The ECB issued its first progress report in September, 2022. Work on a rulebook for the distribution scheme should begin in January. The central bank’s Governing Council can review the results of the research within the fall of 2023 and decide whether or not to proceed to a realization part, an announcement elaborated.
(Lubomir Tassev, Bitcoin.com, 2022)