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The European Banking Federation (EBF) today expressed support for the investigation phase into the issuance of a digital euro by the European Central Bank (ECB). The project seeks to clarify the demand, design and interaction of an electronic form of money issued by the Eurosystem with the payments and banking system. For a digital euro to ultimately benefit the economy while safeguarding the stability of the financial system, close collaboration of the ECB with the European banking sector in the newly launched investigation phase will be fundamental.
The ECB Governing Council’s decision marks the beginning of an in-depth investigation into a potential European digital currency. The ECB has previously published a report on this subject in October 2020, followed by a public consultation concluded earlier this year. In its response to the consultation, EBF has emphasized the need for a digital euro to benefit the European end-users and economy, while avoiding any destabilizing effect on the financial system. Additionally, it called for an essential clarification as to how the digital euro project would go hand-in-hand with private payment and deposit solutions.
With this investigation, the ECB will explore how best to serve the needs of an increasingly digitalised European economy. This ongoing shift in the economy and payments landscape has the potential to fundamentally transform the banking system. Responding to these developments is a top priority for the European banking industry.
“The global payments field is experiencing a major transformation. In the EU, we already have an efficient, secure and well-functioning payments market, where consumers and businesses are able to access various payment methods,” said Wim Mijs, EBF CEO. “At the same time, the rapidly evolving digital economy and the potential global stablecoins pose challenges for policymakers and the financial industry. We are committed to working closely with the ECB and the Eurosystem to unlock the best solutions for European citizens and businesses”.
Visit our website for more information on EBF views on a digital euro.