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Digital Euro: use cases and related design implications

Day 2 Morning

Thursday 27 April

Room :

ROOM 2

Speakers

Chair
Evelien Witlox
Senior Manager, Digital Euro Project - European Central Bank (ECB)
Public Authorities
Burkhard Balz
Member of the Executive Board - Deutsche Bundesbank
Tim Hermans
Executive Director - National Bank of Belgium
Olaf Sleijpen
Member of the Board, Executive Director of Monetary Affairs - De Nederlandsche Bank
Industry Representatives
Santiago Fernández de Lis
Head of Regulation - Banco Bilbao Vizcaya Argentaria (BBVA)
Charlotte Hogg
Executive Vice President and Chief Executive Officer - Visa Europe
Other stakeholder & expert
Monique Goyens
Director General - The European Consumers’ Organisation (BEUC)

Objectives

In an ever-increasing internet and electronic transaction context at the global level, improving and further integrating EU payment services necessitates reflecting on the appropriate infrastructures. Swift and multiple current evolutions raise varied challenges in usability and reliability, cost effectiveness, security, privacy, monetary policy, … not mentioning the likely transformations of the payment industry.

In such a context Central Banks have accelerated Central Bank Digital Currency (CBDC) projects aiming to maintain accessibility and usability of central bank money in digital environments and support monetary sovereignty, while limiting the risks associated with certain digital assets, and contributing to the strategic autonomy objective of the EU.

However, according to the Atlantic Council CBDC tracker, out of 119 initiatives identified, 11 have been launched, 18 are in pilot phase…

The session is in this context dedicated to take stock on the digital euro initiative driven by the ECB, to clarify the main use cases targeted, related business cases, and identify the anticipated evolutions the digital euro is expected to trigger in the financial area Operational priorities and key success factors for an effective adoption and rollout will also be touched upon.

Points of discussion

  1. What are the main use cases targeted by the envisaged Digital Euro? What are the roles targeted for the different payment means available in the EU?
  2. What are the main necessary building blocks for a viable Digital Euro? What is the anticipated role for banks, and the likely consequences on banks deposits and liquidity?
    What is the projected business model of the Digital Euro?
  3. Are there adoption challenges to be addressed? What are the main legal provisions required for creating the Digital Euro? What is the projected timetable?