DIGITAL LIFE

Digital euro closer to reality

The European Central Bank (ECB) has created a platform to simulate payments using the digital euro, such as receiving an order for an online purchase.

The ECB said today that around 70 market participants, including merchants, companies providing financial products and services, start-ups, banks and other payment service providers, are taking part in the project.

After launching a call for applications in October 2024, the European Monetary Authority received 100 applications from around 70 participants, who joined one or both of the “Pioneers” and “Visionaries” work streams.

The innovation platform simulates the envisaged digital euro ecosystem, in which the ECB provides the support and technical infrastructure for European intermediaries to develop innovative digital payment methods and services at European level.

The “Pioneer” work area investigates how conditional payments in digital euros, i.e. transactions that are executed automatically when predefined conditions are met, such as the delivery of an online order, can be implemented from a technical perspective.

The ECB adds that it will also develop possible use cases for everyday payments. The “Pioneers” will explore how to integrate simulated digital euro interfaces into their platforms.

“The ECB provides participants with technical support and specifications, such as an application programming interface, so that they can work independently on use cases of their choice,” the ECB said in the statement.

The participants in this work area will summarise their recommendations in a report, which the ECB will analyse in detail to inform its work on the digital euro project.

The “Visioners” will investigate how the digital euro can address societal challenges, such as digital financial inclusion.

For example, the ECB adds, the possibility of opening a digital wallet at any post office could ensure free access to digital euro services, even for people who do not have a bank account or access to digital devices.

Participants in this second area of ​​the initiative will share and discuss their proposals with the ECB in working meetings.

“We welcome the strong interest that market participants have shown in this exciting initiative,” said Piero Cipollone, member of the ECB’s Executive Board.

The ECB will publish the conclusions of the two working groups in a report later this year.

mundophone