The European Central Bank has defined seven new workstreams to create the digital euro rulebook. Experts are invited to participate, and applications close on April 5. The Rulebook Development Group (RDG) published a status update in early January.
Representatives from the separate parts of the ecosystem – consumers, retailers and intermediaries – make up the members of the RDG.
The latest workstreams include four that focus on interactions between the three groups and with the Digital Euro Service Platform (DESP). For example, this includes interactions between a payment or acceptance system such as a Point of Sale (PoS) terminal, website or ATM and a user’s smartphone app or card. Three other workstreams explore interactions between intermediaries and consumers, businesses and the DESP.
A critical rulebook will define the minimum user experience standards for the central bank digital currency (CBDC). Given there will be numerous wallet apps, if the usability isn’t up to scratch this could heavily impact adoption. Other workstreams explore the certification and approvals of solutions such as PoS terminals, and risk management for different types of participants.
While the digital euro is now in the preparation phase, a decision to launch is subject to the passage of legislation. On February 14, the EU’s parliamentary Committee on Economic and Monetary Affairs discussed the latest draft legislation. Two days later a different committee voted overwhelmingly in favor. Since it was the Committee on Civil Liberties and Justice, and privacy is a key political issue, it makes launching a digital euro rather likely.
