ECB concluded the public consultation on the introduction of a digital euro in EU. ECB received a record level of feedback on this consultation, with about 8,221 responses, and is in the process of conducting a detailed analysis of the responses received. ECB plans to publish a comprehensive analysis of the public consultation in the Spring, which will serve as an important input for the ECB Governing Council when deciding whether to launch a digital euro project. However, an initial analysis of raw data showed that privacy of payments ranked highest among the requested features of a potential digital euro (41% of replies), followed by security (17%) and pan-European reach (10%).
The public consultation was launched on October 12, 2020, following the publication of the Eurosystem report on a digital euro. The Eurosystem task force, bringing together experts from ECB and 19 national central banks of the euro area, identified possible scenarios that would require the issuance of a digital euro. These scenarios include an increased demand for electronic payments in the euro area that would require a European risk-free digital means of payment, a significant decline in the use of cash as a means of payment in the euro area, the launch of global private means of payment that might raise regulatory concerns and pose risks for financial stability and consumer protection, and a broad take-up of central bank digital currencies issued by other central banks. A digital euro would be an electronic form of central bank money accessible to all citizens and firms—like banknotes, but in a digital form—to make their daily payments in a fast, easy, and secure way. The protection of privacy would be a key priority, so that the digital euro can help maintain trust in payments in the digital age. It would complement cash, not replace it. The Eurosystem will continue to issue cash in any case.
Keywords: Europe, EU, Banking, PMI, Digital Euro, Digital Currencies, Suptech, CBDC, ECB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleEBA Publishes Risk Dashboard for Third Quarter of 2020
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.
MAS updated rules for new housing loans by banks and finance companies.
HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.