A digital euro should prioritize online purchases and payments between friends, according to a document published on the European Central Bank’s (ECB) website.
According to a slideshow used at the Feb. 22 meeting, uses such as tax payments, welfare benefits, and in-store payments have only entered the second phase of Central Bank Digital Currency (CBDC) development. says it will.
The ECB is one of many central banks considering whether to issue a CBDC. The ECB is expected to make a formal decision by the end of 2023, but officials have already considered technical options in considerable depth, saying multiple applications are needed to address user needs and market gaps. ing.
According to the document, produced by the ECB’s Digital Euro project team, “practically, a phased approach will help ensure a smooth payment experience for end-users,” while introducing the new system all at once “disrupts the economy.” can be “reduced”.
The first release will be e-commerce and person-to-person peer-to-peer payments, according to the document. Officials from the team have previously said use cases such as payroll and decentralized finance (DeFi)-enabled applications should be shelved and considered at a later stage.
Another document prepared for the same conference said that personal use of the digital euro should be free for basic uses such as onboarding and payments, with banks charging excessive usage fees from merchants and others. New laws may be enacted to prevent it.
Payment service providers “may charge merchants,” but “may enact legislation on merchant pricing given the current level of comparable retail payment solutions,” the document said. Says.
This largely reflects the current arrangements for handling cash. However, European Union legislation called the “single euro payment area” and the “interchange fee regulation” limit the fees that banks and card providers can charge for bank transfers and credit card transactions.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Digital Euro Should Prioritize Online, Peer-to-Peer Payments, ECB Says