HomeCBDCDigital Euro UpdatesBalancing the Needs of the Public with a Digital Euro

Balancing the Needs of the Public with a Digital Euro

Fabio Panetta, Member of the Executive Board of the ECB, provided an update on the digital euro project during a meeting with the Committee on Economic and Monetary Affairs of the European Parliament. He highlighted the importance of making the digital euro attractive to both citizens and merchants in order to achieve the broad policy objectives. The findings of focus groups revealed that the ability to “pay anywhere” and instant, easy, contactless payments were the most valued features of a digital payment instrument. The focus groups also confirmed the concept of “rational inattention,” where people do not distinguish between the digital euro and private digital means of payment. Panetta discussed the potential use cases for the digital euro, including payments in physical stores, e-commerce, person-to-person payments, and payments between governments and individuals. He emphasized the need to balance privacy with other EU policy objectives, such as anti-money laundering and combating the financing of terrorism. Panetta outlined options to ensure privacy while addressing these concerns, including supervised intermediaries managing the onboarding process and limiting the visibility of transaction data to what is strictly necessary. He also discussed the possibility of providing greater privacy for lower-value payments and offline functionality for digital euro payments. Panetta concluded by emphasizing the importance of stakeholder engagement and dialogue with co-legislators in the design and implementation of a digital euro.

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