BRUSSELS, 20 April 2023 – The European Savings and Retail Banking Group (ESBG) takes note of the in-depth analysis of the European Parliament Think Tank on a digital euro, published on 18 April 2023. The document, prepared by the Economic Governance and EMU scrutiny Unit at the request of the European Parliament Committee on Economic and Monetary Affairs, is broadly positive on the preparatory work for a digital euro, currently carried out by the European Central Bank, but “doubtful on the wisdom of eventually launching a digital euro”. In parallel, the European Commission is working on a legislative proposal that will facilitate the rollout of a possible digital euro.
The analysis thereby seems to confirm what has been addressed by the latest ESBG paper, ‘A Digital Euro: what does it mean for savings and retail banks?’, published on 29 March, that stressed the need of addressing many open questions before a successful implementation of a digital euro would be feasible.
Notably, ESBG agrees with the reports’ conclusions on the need for a well-designed compensation structure for the services provided by banks and the analysis of the impact a possible digital euro could have on the banking sector.
“We are supportive of investigating digital money issued by the central bank”, says Sofia Lindh Possne, Chairwoman of the ESBG Task Force on Central Bank Digital Currencies (CBDCs). “Yet, a digital euro must be designed without causing any new vulnerabilities in the financial system”, she says, pointing at potential deposit outflows that would reduce banks’ capabilities to finance the economy, and highlights the need of a sustainable compensation model.
Apart from its potential negative impact on banks’ liquidity, it will be vital to maintain a level playing field in the European payments market, according to Diederik Bruggink, Head of Payments, Digital Finance and Innovation at ESBG, and recent efforts towards a pan-European digital payment solution must be taken into account. “Indeed, ESBG and its members welcome the digital euro as a logical representation of central bank money in the digital age. However, a digital euro needs to find its place in the already busy payments mix, and where it should respect the existing level playing field”.
Supportive of further embracing innovative payment solutions, ESBG looks forward to continue the constructive dialogue with involved stakeholders in the European Commission, the European Parliament and the European Central Bank.
Your Contact:Astrid SatovichPolicy Advisorastrid.satovich@wsbi-esbg.orgPhone: +32 2 211 11 36
related
European Banking Authority (EBA) on ESG risk management
The European Savings and Retail Banking Group (ESBG) submitted its response to the consultation launched by the European Banking Authority (EBA). ESBG insists on the need for consitency with CSRD and CSDDD, the addressees of this guideline should also
Enhancing Transparency in Bank Disclosures: ESBG delivers comprehensive response to the EBA’s Pillar 3 data hub consultation
On 14 December 2023, the European Banking Authority (EBA) published a discussion paper on the Pillar 3 data hub processes and its possible practical implications.
IASB Exposure Draft (ED) on Financial Instruments with Characteristics of Equity
On 29 November 2023, the International Accounting Standards Board (IASB) proposed amendments in an Exposure Draft to tackle challenges in financial reporting for instruments with both
ESBG’s response to the EFRAG Comment Letter on Financial Instruments with Characteristics of Equity
On 29 November 2023, the International Accounting Standards Board (IASB) proposed amendments in an Exposure Draft to tackle
ESBG advocates for increased clarity and streamlining of supervisory reporting requirements
On 14 March, ESBG submitted its response to the European Banking Authority (EBA) consultation on ITS amending Commission Implementation Regulation (EU) 2021/451 regarding supervisory reporting
WSBI-ESBG advocates for robust implementation of the BCBS Pillar 3 framework for climate-related financial risks
On 14 March, WSBI-ESBG submitted its response to the Basel Committee on Banking Supervision (BCBS) consultation on its Pillar 3 disclosure framework for climate-related financial risks
ESBG stresses the need for consistency and clarity in its Response to the SFDR Review Consultation
ESBG submitted its response to the European Commission’s consultation on the SFDR review, aiming to enhance transparency in sustainability-related disclosures within the financial services sector
ESBG response to the EBA’s consultation on Guidelines on preventing the abuse of funds and certain crypto-assets transfers for ML/TF
The guidelines on the “travel rule” delineate the actions that Payment Service Providers (PSPs), Intermediary PSPs
ESBG responds to the SRB consultation on the future MREL policy
The European Savings and Retail Banking Group (ESBG) submitted its response to the consultation launched by the Single Resolution Board (SRB) in December 2023 on the future of the Minimum Requirement for own funds
ESBG’s response to the Commission’s consultation on the GDPR
The primary EU legislation ensuring the fundamental right to data protection is the General Data Protection Regulation
