The largest financial institution in Europe will set up a team to start developing the regulation of the digital euro in February next year.
- Applicants have until January 20 to apply.
- Research continues to evaluate what the design of this CBDC would look like.
The European Central Bank (ECB) yesterday opened a call for “experts with experience” to apply with the idea of participating as volunteers in the group that will work on the regulatory code of the digital Eurosystem. Those interested have until January 20 to send their CV and the answers to the five questions that the group leaders ask to “justify the merit”.
Successful applicants will become members of the Euro Digital Scheme Rulebook Development Group, i.e. the set of rules that will be established for making payments and transfers with this asset, which is expected to be used throughout Europe.
The development team will start work on the rules for using the digital euro on February 23, the ECB said in a statement.
In addition to supporting the drafting of a regulatory code for the digital euro, the group will also carry out the task of collecting market intelligence and providing a sectoral perspective on the Eurosystem. All of this under the coordination of Christian Schäfer, who heads the regulation of the central bank’s digital currency or CBDC system.
Plans for the creation of the digital euro
As the ECB points out in its statement, the development team will be composed of market representatives with relevant experience and Eurosystem staff.
On the supply side, payment service providers, banking players as well as payment institutions or electronic banking institutions will be selected. While on the demand side, there will be representation from consumers, physical retailers, online retailers, businesses, enterprises or SMEs.
The research phase for the digital euro started in October 2021 and is expected to end this year.
The European Central Bank has set the roadmap to proceed with the design and rules for the development of the digital euro. Source: ecb.europa.eu.
As reported by CriptoNoticias, specialists continue to study what the design of this CBDC would look like and how it could be distributed. Though the ECB said in its December report that the digital euro will only be a manageable asset and manageable by “supervised intermediaries,” which will function in the same way as current bitcoin (BTC) and cryptocurrency exchanges.
The ECB defines a supervised intermediary as an entity supervised and supervised by a previously designated public authority, responsible for ensuring that transactions are carried out within a relevant regulatory framework.
European citizens have already made it clear that they reject the idea of the ECB issuing a digital euro. However, the Financial Institute believes that the development of the digital euro is necessary. He argues that if the use of euro cash “becomes less and less” in the countries that make up the bloc, it could eventually lose “its role as Europe’s monetary anchor”.
On the other hand, the president of the ECB, Christine Lagarde, said she does not agree with the free banking model emerging from the Bitcoin ecosystem and therefore considers the CBDC a necessity for the traditional financial system to support the role of central banks.
“Beware of CBDCs,” some analysts warn
Some analysts, such as Spaniard Mac Vidal, have argued that CBDCs like the digital euro are a trap. “They [financial institutions] see the risk of losing control and to avoid wanting to create a currency-dependent society.”
The speaker and technicals facilitator added that when central banks roll out their digital currencies, people will adopt them in the belief that they own them, but in reality they won’t. This is because this new version of money remains under the control of states.
In Vidal’s view, CBDC will help governments achieve political, economic and geopolitical goals around the world. But they will do so by using their digital currencies to spy on citizens to a degree never seen before.
Similarly, Spanish analyst Alberto Iturralde issued a warning about how he suspects banks will act in the future. He believes that the traditional financial system will impose CBDCs and fiat money to control citizens more.