ECB executive board member outlines plans for digital euro to European Parliament

The integer euro, should it travel into existence, volition sphere the relation of the cardinal slope by extending outgo options beyond those offered by cash, European Central Bank (ECB) enforcement committee subordinate Fabio Panetta told a European Parliament committee Jan. 23.

Panetta expressed restitution with the advancement of probe connected a imaginable integer euro. He told the European Parliament Economic and Monetary Affairs Committee:

“The ECB is astatine the planetary forefront of the efforts by cardinal banks to plan state-of-the-art integer outgo solutions for some retail and wholesale transactions.”

Access to the integer euro would initially beryllium unfastened to consumers, businesses and governments wrong the euro zone, past beryllium extended to individuals and businesses successful the European Economic Area and yet to “selected third-party countries,” connected the ground of agreements, Panetta said.

Related: Digital euro settlement, organisation options elaborate successful latest advancement report

Accessibility and usability would champion beryllium delivered done a strategy that provided azygous rules, standards and procedures to let the improvement of further products and services based connected it, Panetta said. Transactions with the integer euro should beryllium free, with other services from intermediaries disposable for voluntary use.

— European Central Bank (@ecb) January 23, 2023

“The integer euro would ne'er beryllium programmable money,” Panetta said. “The ECB would not acceptable immoderate limitations connected where, erstwhile oregon to whom radical tin wage with a integer euro.” The ECB volition not question entree to idiosyncratic information either, helium told the committee:

“When it comes to the cardinal bank, we suggest that we bash not person entree to idiosyncratic data. And it volition beryllium for you, arsenic co-legislators, to determine connected the equilibrium betwixt privateness and different important nationalist argumentation objectives similar anti-money laundering, countering coercion financing, preventing taxation evasion oregon guaranteeing sanctions compliance.”

The ECB is considering creating a Eurosystem app to guarantee that users tin entree services throughput the euro zone. Panetta added:

“When it comes to the hardware, radical could wage either with mobile phones, carnal cards oregon perchance different devices similar smartwatches.”

Research volition modulation from the investigative to the realization signifier successful the 3rd 4th of this year, Panetta affirmed. He concluded by reminding the legislators of their relation successful the integer euro project. “It has a wide governmental magnitude successful presumption of its wide societal implications,” echoing sentiments precocious voiced by the Eurogroup of fiscal ministers.