Tuesday, July 23, 2024
23.6 C
New York

ECB publishes progress update on digital euro preparation phase

ECB Digital Euro Progress Report: Key Points

  1. Preparation Phase Progress:
    • The ECB’s digital euro preparation phase has been underway since November, with good progress reported by Piero Cipollone, ECB executive board member.
  2. Focus Areas:
    • Privacy:
      • Online transactions will offer higher privacy standards than current digital payment solutions, using pseudonymisation, hashing, and data encryption.
      • Offline transactions will provide a “cash-like level of privacy,” with payment details only visible to the payer and payee.
    • Offline Functionality:
      • Investigation of technical tools for offline transactions is ongoing, focusing on account funding and fraud checks.
    • Possession Caps:
      • Digital euro holdings will not be remunerated and will be subject to holding limits to maintain financial stability and effective monetary policy transmission.
  3. Stakeholder Engagement:
    • The ECB will continue engaging with stakeholders, including the European public, to ensure the successful development of the digital euro.
  4. Technical Development:
    • Identification of providers for the digital euro’s supporting platform and the establishment of a technology rulebook are in progress.
  5. Holding Limits Calibration:
    • A workstream involving central banks and national authorities is identifying factors influencing holding limits.
    • A dialogue and data collection exercise has started, with more engagements planned.
  6. Legislative Framework:
    • Issuance of the digital euro will only proceed once relevant legislation is adopted, which is essential for its functionality.
  7. Future Updates:
    • Detailed information on holding limits will be provided closer to the issuance time.
    • The ECB’s report emphasizes ongoing stakeholder engagement and legislative development for the digital euro.

Hot this week

Banking as a Service: Meaning, Examples, Benefits and Future

The push for open banking has led to a...

What is Fintech?

Fintech: A term used to refer to innovations in...

Best fintech blogs and websites

Fintech (financial technology) has been an interesting part of...

How to buy shares online

Buying shares online in India has come a long...

Is it worth investing in life insurance over 60?

Is it worth investing in life insurance over 60? As...

Boku names former NatWest exec Rob Whittick as new CFO

Key Points:Company Background:Headquarters: London and San Francisco ...

CFPB proposes new rule to include payday advances under Truth in Lending Act

Key Points:Proposed Rule:Payday loan advances would be...

B2B paytech Slope lands $65m equity and debt funding led by JP Morgan

Key Points:Investment Details:Total Investment: $65 million Led...

US fintech Coast bags $40m Series B for product, partnership and team expansion

Key Points:Investment Details:Total Raised in Series B:...

Black Hills Federal Credit Union tasks NCR Atleos with ATM management in new agreement

Black Hills Federal Credit Union (BHFCU) Partners with NCR...

RTGS.global co-founder and CTO Andrew Smith announces departure

Andrew Smith to Depart RTGS.globalPosition: Co-founder and Chief...

Related Articles

Popular Categories

spot_imgspot_img