Private Banks Will Manage Future Digital Euro Transactions

The European Central Bank (ECB) wants intermediaries such as payment service providers and credit institutions to be responsible for digital euro transactions.

The European Union joins an expanding list of countries looking to launch their own central bank digital currencies (CBDCs). of ECB latest report It turns out that EU leaders will decide the final fate of the digital euro after October 2023.

Recent reports, in particular, outline the role of intermediaries in launching CBDCs. Under the supervision of the ECB, they will act as direct counterparties for individuals, businesses and traders.

The document specifies that intermediaries will offer user-facing services, such as opening wallets or accounts, payment instruments, onboarding and offboarding. They will also be bound to conduct Know Your Customer (KYC) and Anti Money Laundering (AML) checks. In addition, their duties will include offering equipment or interfaces that allow users to pay with the digital euro online, in stores or in person.

ECB It also said that it would simultaneously provide supervisory roles and facilitate the issuance of a digital euro (CBDC).

ECB as part of efforts to actualize two-year investigation into central bank digital currency (CBDC) Few Five businesses from a list of 54 potential innovators to participate in its Digital Euro “prototyping exercise”. The trial is expected to end in Q1 2023.

The exercise is meant to evaluate all the compatibility points of the digital currency as well as the effectiveness of its partnership with Amazon and others.

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