EU Prepares Legislative and Technical Model for Digital Euro

The European Central Bank has presented a report on the achievements of the Rulebook Development Group, actively working on developing standards and regulatory rules for the digital euro. The release from the ECB highlights various technical aspects and regulatory rules for this digital currency.

The first draft of the rule compilation includes functional and operational models that intricately describe all stages of using the digital euro. It also encompasses requirements for the technical infrastructure of the digital euro, including high-level architecture and software standards, along with a draft law defining the rights and obligations of market participants.

Consumers, retail sellers, and intermediaries actively participated in the development of the interim version of the digital euro, closely collaborating with group members. During the first quarter of 2024, the group plans to make all necessary adjustments to the draft, considering feedback from all stakeholders involved in the development.

The ECB emphasizes that the rules governing the use of the digital euro should be highly flexible, considering not only current EU regulatory requirements but also allowing for necessary adjustments in the future.

However, the final decision on the issuance of the digital euro has not been made yet. It will be made after completing all preparatory measures and enacting the relevant legislation.

Members of the European Commission view the Central Bank Digital Currency (CBDC) as an alternative to cash, emphasizing the potential of the digital euro for personal transfers among EU citizens. On the other hand, the ECB underscores that the capabilities of storing and using digital currency should be limited at the code level.

In October, The Gaze reported that the European Central Bank is initiating preparations for the introduction of the digital euro. The ECB announced that from November 1, it would commence a two-year "preparatory phase" for the digital euro, during which it would refine regulatory acts, select private sector partners, and conduct testing and experiments.

ECB President Christine Lagarde has stated that the digital euro could offer people a way to make purchases independently of payment service providers controlled by non-European companies.