The ECB published its second report on the feasibility of launching a digital euro, updating progress made since September 2022. The report includes information on the practical workings of a digital euro, such as the role of intermediaries, the settlement model, and the distribution model.
The ECB began its study on the digital euro in October 2021, seeking to probe fundamental questions about the design and distribution of a central bank digital currency (CBDC) for the euro zone.
In the proposals, researchers recommended that the digital euro adopt a supervised intermediaries approach rather than a direct model to the central bank. Supervised intermediaries would facilitate all retail responsibilities, including devices and interfaces enabling digital euro transactions.
“Their responsibilities would consist of offering user-facing services, such as account or wallet opening, payment instruments, and onboarding and offboarding, encompassing customer due diligence and anti-money laundering checks.”
As for settlement, the report states that since the digital euro is the responsibility of the central bank, the “Eurosystem central banks” would be responsible for settlement, including recording and verification tasks.
To maximize the adoption of the digital euro, a “transparent financing and distribution experience is essential,” according to the report.