Position paper - Digital Euro

The Digital Euro proposal aims at further diversifying the EU payments landscape, providing an alternative choice for consumers while safeguarding the status of central bank money as a monetary anchor. While the EU’s effort in fostering innovation in the payments market is a positive development and a Digital Euro has the potential to be complimentary to existing payments solutions, further attention needs to be given to ensure European citizens benefit from the Digital Euro.

For the Digital Euro to truly deliver its added value to EU citizens and the EU economy, the co-legislators should thoroughly examine the legal and market implication of the Digital Euro, in light of the numerous and ongoing changes to the legal framework. Furthermore, further thoughts need to be given on how to address and mitigate the risks introduced by a Digital Euro. Therefore, policymakers should consider both the monetary policy implications and real-life practicalities for consumers and the financial system, such as data protection and privacy, anti-money laundering / combating the financing of terrorism (AML / CFT) considerations, risks to consumer protection and inclusion, as well as risks to financial stability and financial disintermediation. It is also crucial to ensure interoperability across jurisdictions and platforms, as well as continue exploring the role that wholesale Central Bank Digital Currencies (CBDCs) can play in driving innovation and efficiencies in wholesale markets.