The European Central Bank (ECB) has shared a report on the development of the digital Euro, highlighting the advancements made by the Central Bank Digital Currency (CBDC) within the Rulebook Development Group (RDG). The ECB has outlined the rights and obligations of members under the draft legislation since the last update in June 2023, and has also defined the general state of the digital Euro’s usage.
Representatives from consumer, individual merchant, and intermediary sectors were present in the report, and an interim evaluation was conducted by the RDG members. The ECB stated that the draft rulebook would be sufficiently flexible to meet future regulations and will be updated according to the outcome of the digital Euro legislative process.
The central bank noted that the implementation of the digital Euro could be a collaborative effort between various public and private institutions. Existing intermediaries are expected to act as a bridge between the central bank and end-users within the digital Euro environment.
Intermediaries referred to could be banks or other financial players such as payment service providers. The report suggests that intermediaries could be the same institutions that handle transactions for both payers and recipients.
In addition, intermediary institutions may utilize third-party services to assist in their duties, although these third parties are not direct actors in the plan but merely external agents. The RDG may also add more sections to the rulebook as the preparatory phase progresses.
ECB President Christine Lagarde stated in October 2023 that the digital Euro project is steadily progressing, and the ECB Governing Council has approved the initiation of the preparatory phase for the digital Euro. This was a significant step in the efforts to create a CBDC in the Eurozone.