On Tuesday 28 March the European Banking Federation (EBF) presented its vision to meet the various objectives inherent in the introduction of a digital euro in the Eurozone that would support European strategic autonomy, preserve financial stability and encourage innovation.
According to the organisation representing Europe’s major banks, this project, which is currently being piloted by the ECB, must include three elements: - a digital euro for retail transactions capable of acting as a monetary anchor for the euro; - a single central bank digital currency (CBDC), based on DLT technology, for the settlement of interbank transfers and wholesale transactions linked to central bank reserves; - the issuance by banks of ‘money tokens’ to meet the changing needs of the economy, for example automated industrial processes for businesses.
The EBF stresses the importance of the public-private partnership through which digital currency would be developed by the European System of Central Banks as a ‘raw material’ and which would enable the banking industry to develop competitive payment solutions.
See the position statement from the European Banking Federation: https://aeur.eu/f/631 (MB)