Key Points:
- IBM specialists have suggested ideas for implementing the digital euro.
- The five areas of focus for the draft include building on existing rails, extending PSD2 with a digital euro API, allowing strong privacy for low-value proximity payments, including a centrally governed distributed ledger, and starting with a minimum viable digital euro within a sandbox.
- The concept of a digital euro has gained support, with 80% of respondents expressing their support in a public survey conducted by the ECB.
- The Eurogroup and the ECB have been involved in discussions and decision-making regarding the digital euro.
- The initial plan is to make the digital euro accessible to euro area residents, governments, merchants, and potentially consumers from selected third countries.
The European Commission could consider implementing the digital euro based on ideas suggested by IBM specialists. The draft proposal focuses on five key areas, including building on existing rails, extending PSD2 with a digital euro API, ensuring strong privacy for low-value proximity payments, utilizing a centrally governed distributed ledger, and starting development with a minimum viable digital euro within a sandbox. The concept of a digital euro has gained support, with an overwhelming majority of respondents in a public survey expressing their positive opinion. The Eurogroup and the ECB have been actively involved in discussions and decision-making regarding the digital euro. The initial plan is to make the digital euro accessible to euro area residents, governments, merchants, and potentially consumers from selected third countries. The development of the digital euro is an ongoing process, with progress reports and exploration of different approaches and distribution options.
Hot Take:
The suggestions put forth by IBM specialists provide a solid foundation for the implementation of the digital euro. The focus on existing infrastructure, privacy, and a centrally governed distributed ledger shows a comprehensive understanding of the requirements for a successful digital currency. With the overwhelming public support and the involvement of important stakeholders such as the Eurogroup and the ECB, the digital euro has the potential to revolutionize the European financial landscape. It will be interesting to see how the digital euro progresses and if it can serve as a model for other regions considering their own digital currencies.
By
By
By
By