ECB Conducts Development and Review of Draft Rulebook for Proposed Digital Euro
Summary:
The European Central Bank (ECB) Rulebook Development Group has been formulating guidelines and processes for digital euro transactions. A draft rulebook has been publicized, providing insights into the central bank digital currency's technical design. The group, which includes representatives from national central banks and industry groups, is currently reviewing the draft, which may be adjusted based on feedback. A final decision on launching the digital euro will be made once the ECB completes its preparations and the requisite law is in place.
The Rulebook Development Group (RDG) under the European Central Bank (ECB) has been formulating protocols, regulations, and processes for digital euro transactions. The group recently made public an initial version of this rulebook, offering insights into the central bank digital currency's technical nuances. The team, established in January 2023, consists of industry advocacy bodies and national central banks' representatives and has been focusing on operational and functional models, overarching architecture, standards, and participant's responsibilities and rights according to the draft laws.
The draft regulation is being examined in its entirety by the development group. Adjustments to this preliminary version may be made based on the received feedback during this review process, as stated by the ECB. The ECB initiated the "preparation stage" for the digital euro in November 2023, post the investigative phase. This stage is set to go on for two years, during which rules will be finalized, experiments conducted, feedback gathered, and an accompanying legislative framework outlined.
As the draft law advances, the RDG will concentrate on aspects including user experience, branding, communications, certification, testing, approval processes, internal regulations, risk control, and interoperability and implementation. The initial draft law has garnered varied responses from multiple quarters.
The ECB has also called for applications to contribute to specific aspects of the digital euro project. It seeks suitable vendors capable of focusing on areas such as alias lookup, fraud and risk control, software and app development, offline services, and secure payment exchange. A final verdict on whether to launch the digital euro will only be delivered once the ECB's preparations are wrapped up and the requisite law is in place.
Published At
1/3/2024 10:25:40 PM
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