A step taken on a long and winding journey. The European Central Bank (ECB) announced, Wednesday October 18, the launch of the phase “preparatory” of its digital euro project… the outcome of which remains uncertain. After the phase of” investigation “opened in October 2021, the Frankfurt institution will therefore open this phase which will consist, over the next two years, of completing the development of operating rules, of selecting service providers capable of providing the necessary technical infrastructure, and of carry out experiments.
Everything is conditional since the final decision on whether or not to create this new form of the single currency will only be taken after October 2025 by the Governing Council, provided that the necessary legislative changes have been adopted by the Union institutions. European. And this agreement would not mean the immediate appearance of the digital euro, which would undoubtedly take several more years.
If the horizon remains distant, the ECB is nevertheless striving to specify what the digital euro would look like if it ended up being made available to the 347 million people who make payments every day in the twenty countries of the zone euro: this digital form of cash could be used between individuals, in physical points of sale as well as online and for transactions with public administrations. All for free and without users having to use a smartphone: payments could be made with a smart card or other non-connected medium. And digital euros would be exchangeable for cash at any time, particularly at ATMs.
Reluctance of users and banks
Aware that the project raises legitimate concerns about data confidentiality, the ECB insists on the fact that it would never have access to users’ payment data, that service providers would be subject to all existing rules in this area and that the digital euro would not be a “programmable” currency, that is to say that the monetary authorities could in no case impose conditions on its use or restrict its use to certain payments. A possibility which has never been mentioned by the institution, but which continues to fuel some of the many conspiracy theories that have appeared since the launch of the project.
Overcoming the suspicions of potential end users remains one of the keys to the success of the project. But for the institution chaired by Christine Lagarde, the main issue is that of sovereignty: even if Facebook has given up on its virtual currency project (Libra-Diem), even if cryptoassets like bitcoin are slow to acquire legal status. means of payment, the ECB does not intend to abandon the development of new dematerialized means of payment and future payment infrastructures to private players, a fortiori to groups outside the euro zone, whether they are called Visa, MasterCard , Apple, Google or Samsung.
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