ECB seeks draft Euro digital rules

 

ECB seeks draft Euro digital rules

The European Central Bank Rule Development Group (RDG)

 has issued an update report on the draft rule book that

 will ultimately define the Euro's digital standards and procedures.

The report provides a detailed look at the technical aspects of the design of

the digital currency of the EU's central banks. RDG Group encourages

 receiving comments on the draft to help it shape the future process.

The Central Bank indicated that amendments to the preliminary 

draft will be considered in accordance with comments received.

He stressed that

 the draft would be flexible enough to accommodate any future adjustments

and would be updated according to the results of the legislative process of

 the digital euro.

The process of gathering feedback is important to

 alleviate some tensions in the banking community,

It raised concerns about the potential loss of retail brokerage due to 

the widespread use of central banks' digital currency.

The German Banking Association launched an appeal in March 2023

 for the European Central Bank to allow commercial banks to

 lead the digital euro development efforts.

The development group consists of representatives of industry groups 

and national central banks, and has been writing rules since January 2023.

The summary of their efforts is "to define the roles of

 all parties involved in the digital euro ecosystem,

including end-users

traders and investors ", with the aim of ensuring a satisfactory

 payment experience and promoting greater innovation and competition.

The RDG Group aims to produce a unified set of rules, standards

and procedures to "consolidate digital euro payments in the eurozone."

In November 2023

the ECB began the phase of testing the compulsory preparation of

the digital euro to explore technical aspects and operational procedures

and official trials are expected to begin in the second quarter of 2024.

While the ECB continues to end final rules, conduct trials and gather feedback

the accompanying legal and legislative framework is also being prepared

 by the ECB's Board of Governors.

The European Central Bank Rule Development Group (RDG) announced that the preliminary draft of the rule book covers functional and operational models,

Including comprehensive flows describing 

all use cases and services related to the digital euro

In addition to

the infrastructure and high standards that may be taken into account in 

the context of the digital euro, the commitment model defines members

' rights and obligations in accordance with the legal project.

The European Central Bank 

has issued a call for applications to 

work on individual components of the digital euro.

These components aim to facilitate payments by users 

and brokers using simple aliases rather than long account numbers

as well as to combat fraud

and risk management, provide application and software development tools

offline services and secure the exchange of financial information.

At the same time

preparations will continue by the European Central Bank and the RDG Group

focusing on the launch date of the digital euro in 2026.