BRUSSELS, 6 July 2021 – Since the publication of the report
on a digital euro in October 2020, ESBG and its members have been following
closely and with great interest the developments made by the European Central Bank
(ECB) in the project of a digital euro.
In this context, ESBG has recently finalised a high-level
paper that analyses some of the main challenges that a digital euro will face.
The paper touches upon five main topics: First, it describes the bank funding
model and the challenges and risks that the introduction of a digital euro
could bring about. Second, it discusses the topic of limits to individual
holdings and finds that any envisaged limit should be based on a sound
assessment of available data. Third, it focuses on the impact that a digital
euro would have on intermediation and competition. Fourth, it describes the
point of view of the customers. Fifth, it examines cross-border payments.
Finally, in suggesting four possible use cases that could
especially benefit from the issuance of a digital euro, ESBG and its members
stand ready to further engage with the ECB on the possible issuance of a