Member States support the European Commission’s ambition to make pan-European instant payment solutions the new standard, according to draft EU Council conclusions on the new strategy presented in September on the subject (see EUROPE 12567/1).
The draft text, dated 4 March and copied to EUROPE, will be submitted on Wednesday 10 March to the ambassadors of the Member States to the EU (Coreper) and will also be on the agenda of the Ecofin Council on 16 March as an information point.
According to the text, Member States support the main pillars of the new strategy, in particular the promotion of the widespread use of instant payments.
The Covid-19 pandemic has confirmed the importance of secure, accessible and convenient digital payment methods, although in most Member States cash remains an important means of payment, particularly for certain segments of the population, the text acknowledges.
The text also warns of the policy challenges that the emergence of new payment solutions poses in terms of regulation and supervision, notably in terms of security, consumer protection, competition, data protection, anti-money laundering and combating terrorist financing.
Before any legislative proposal is made in this area, Member States encourage the Commission to prepare a study on the level of acceptance of digital payments in the EU, while pointing out the important differences between countries.
Central Bank Digital Currencies
The draft text remains cautious on Central Bank Digital Currencies (CBDCs). While recognising their potential, it also stresses the complexity of the issue and the importance of carrying out “a careful and thorough analysis of the potential adverse effects”, in particular on financial stability, monetary policy and data protection.
Having said this, Member States support the work of the European Central Bank (ECB) on a digital euro (see EUROPE 12581/21) and underline the important role of the European Commission and the Eurogroup (see EUROPE 12595/3) in its development.
They also stress the need to ensure full transparency vis-à-vis Member States outside the eurozone.
Review of the PSD2 Directive
The text also supports the full review of the implementation and impact of the Payment Services Directive (PSD2), scheduled for the end of 2021, and calls on the Commission to focus in particular on scope, interaction of the Directive with current legislative developments, the treatment of privacy risks, its impact on competition, as well as on its effectiveness in limiting fraud and enhancing consumer protection.
It should be recalled that, at the Ecofin Council of October 2020 (see EUROPE 12575/5), the French, Dutch and Luxembourg Finance Ministers had warned against an overly premature review of the Directive.
See draft text: http://bit.ly/3bp1YGc (Original version in French by Marion Fontana)