ECB allows the possibility of issuing the digital euro without using blockchain
The regulator has not yet decided which technology is best for the asset
22.12.2022 - 12:15
325
2 min
0
Progress continues on the creation of a digital euro, and the European Central Bank (ECB) has documented it in a second progress report that describes design and distribution options recently approved by its governing council. The report considers four crucial issues, roughly in keeping with the timeline the ECB set for itself that tentatively culminates in a decision on whether to transition from the investigation to the realization phase of work in Q3 2023.
The report outlines the roles of the Eurosystem and intermediaries and establishes that supervised intermediaries would be responsible for all management and user-facing roles in the system. The central banks that make up the Eurosystem would verify and record transactions, correct errors in that process and bear responsibility for their accuracy. Nonetheless, “the digital euro would be designed so that it minimised Eurosystem involvement in the processing of user data,” the report states.
Offline peer-to-peer transactions with validated digital euros could be settled in a digital storage device and later “verified and recorded through secure elements in hardware devices.”
In January 2023, the @ecb will invite market participants to take part in market research to obtain an overview of options for the technical design of possible digital euro components and services #CBDC https://t.co/c2GIL5Mapg— Central Bank Payments News (@cbpaymentsnews) December 16, 2022
The ECB is not committed to blockchain technology, the report notes:
“The Eurosystem could rely on either traditional technology, distributed ledger technology or a combination of both for settlement activities. The Eurosystem has not yet taken a decision on the technology that would be best suited for a digital euro.”
Funding and defunding (converting money to and from digital form) should include mechanisms to handle transactions that exceed limits set on digital currency accounts with automatic access to holders’ bank accounts.
A set of pan-euro rules, standards and procedures forming a “scheme” would be necessary for the equitable distribution of the digital euro, the report states. The goal of the scheme will be that:
“Paying in digital euro should always be an option, irrespective of the entity with which end users open digital euro accounts or wallets and of their country of origin.”
The ECB published its first digital euro progress report in September, after a year of work.
This material is taken from the website cointelegraph.com.
Useful material?
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Technologies
The company also unveiled its own blockchain adoption index
Nov 11, 2024
Mining
Along with this, the company will reduce non-mining business units
Nov 8, 2024