To make sure the digital euro can be easily used by all stakeholders if they so wish, we are seeking to ensure its smooth integration into the existing payment landscape.
To this end, the Eurosystem has been engaging in close dialogue with consumer associations, merchant associations, commercial banks, and other private intermediaries — both at the European and national levels.
And through its design, we will ensure that the digital euro poses no risk to financial stability. A holding limit will be set so that it is used strictly as a means of payment, not as an investment asset. The Eurosystem has been conducting extensive work on this topic, in partnership with market players.
While this initiative is moving forward at a steady pace, there is still a significant road ahead before people could start paying with a digital euro with the current project plan. It is unlikely to be before 2028 but the past two years have been instrumental in finalising the digital euro’s design, testing its functionalities with potential users, and selecting the service providers to develop its technical architecture. By the end of the month, the Governing Council of the ECB will decide whether to move on to a next preparatory phase of the project.
Let me stress however that no decision has yet been taken to issue a digital euro. Such a decision can only be taken once a final regulation is adopted by the European Parliament and the Member States, hopefully next year.
Conclusion
As you can see, the Banque de France and the national central banks of the Eurosystem are firmly resolved to support innovation, not only by helping to establish an appropriate regulatory framework, but also by innovating in their own right. However, the private sector has a leading role to play in bringing to the market innovations and providing safe payment solutions assets alongside the central banks’ provision of CBDC.
Our common goal should be to expand the current monetary system based on the coexistence and complementarity of central bank and commercial bank money to the digital economy, in order to ensure financial stability, security, and trust. Thus, we very much welcome the discussions and initiatives of European financial intermediaries, like those led by the EPI with its WERO service and those consisting in developing “tokenised deposits” or stablecoins in euro issued by European financial intermediaries, to maintain a broad “layer of commercial bank money-based payment solutions” for the digital space. This is essential to provide to our digital economy with a strong and efficient monetary system.
Thank you for your attention. I would be delighted to answer any questions.