European Central Bank (ECB) shared a report on Wednesday regarding the development of the digital Euro. The report draws attention to the progress made by the central bank digital currency (CBDC) within the boundaries of the Rulebook Development Group (RDG). The central bank also defined the rights and obligations of members under the draft legislation since the last update in June 2023, and outlined the general situation regarding the use of the digital Euro.
ECB Adds Public-Private Sector Players
While the report included representatives from consumer, individual seller, and intermediary sectors, an interim assessment was also conducted by RDG members.
The ECB made the following statement:
The draft rulebook will be flexible enough to meet future regulations and will be updated according to the outcome of the digital Euro legislative process.
Meanwhile, the central bank notes that the implementation of the digital euro could be a time-consuming effort among various public and private institutions. It is also mentioned that existing intermediaries will act as a bridge between the central bank and end-users in the digital Euro environment.
The intermediaries referred to could be various financial players such as banks or other payment service providers. Looking at the published report, it seems possible for the intermediaries conducting transactions between payers and recipients to be the same institution.
In addition to this, it is indicated that the mentioned intermediary institutions may benefit from third-party services to assist in their duties. However, it is also clearly stated that these third parties are not direct actors of the plan but merely external agents.
On the other hand, it is mentioned that other sections will be added to the rulebook by the RDG depending on the progress of the preparation phase.
Eurozone’s Crypto Approach and Boundaries
In October 2023, European Central Bank President Christine Lagarde made a statement that the digital Euro project continues to progress steadily.
During this time, Lagarde emphasized that another step had been taken, adding that the ECB Governing Council had approved the initiation of the preparatory phase for the digital Euro.
Looking back, this was indicating a very significant step in the efforts to create a CBDC in the Eurozone.
