In a letter sent by Piero Cipollone, member of the ECB’s Executive Board, to Irene Tinagli (S&D, Italian), Chair of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) on Monday 25 March, the European Central Bank (ECB) provided an analysis of the potential impact of users holding several digital euro accounts.
The ECB stresses that such a scenario would require it to process more personal data than in the case of a single account (in any case, the Eurosystem would not be able to identify an individual user - see EUROPE 13274/29).
The ECB also points out that, in terms of user experience, this option, which would be a user choice, carries the potential risk, in particular, of presenting the digital euro as a complex element.
The ECB also notes that such a scenario would require coordination efforts to ensure that, if any of a user’s identity attributes were to change (such as surname), all payment service providers (PSPs) would be informed of the change. This last point is important to avoid duplication of digital euro holding limits, as it could allow a user in this position to open another wallet with another PSP, at least until the identity verification (KYC) processes have been completed.
Furthermore, with regard to offline use, in a multiple account scenario, the ECB considers that offering users the possibility to flexibly adjust the holding limit would require PSPs to update the applications of the systems and products in the area of data processing (SAP) on an annual basis.
The note also examines the possibility of joint accounts, PSP preferences and the user’s point of view.
Piero Cipollone stresses that the ECB will continue to look in greater depth at the technical aspects addressed in the note and will invite stakeholders to provide their comments.
Link to the letter: https://aeur.eu/f/bjm
Link to note: https://aeur.eu/f/bjl (Original version in French by ÉmilieVanderhulst)