The European Central Bank (ECB) reported on the successes of the Rulebook Development Group (RDG), responsible for developing standards and regulatory rules for the digital euro (CBDC).
The European Central Bank (ECB) reported on the RDG’s progress in 2023. The regulatory group published several technical aspects and rules for the digital euro.
The first draft of the set of rules, presented as an interim version, includes:
- functional and operational models describing all phases of using the digital euro;
- requirements for the technical basis of the digital euro, including high-level architecture and software standards;
- a draft law establishing the rights and obligations of market participants.
The development of the interim version involved consumers, retailers, and intermediaries who worked closely with the RDG members. In Q1 2024, the group is committed to making any necessary adjustments to the draft to incorporate feedback from all stakeholders.
The ECB aims to make the set of rules as flexible as possible to take into account not only the current EU regulatory requirements but also to be able to make the necessary adjustments, should any be developed.
The final decision on the issuance of the digital euro is still pending. The EU’s CBDC pilot project moved to the preparation stage, which will last two years. During this time, the RDG will continue working on the set of rules, in particular, there are plans to expand it with the following sections:
- minimum user experience requirements;
- branding and communication standards;
- certification;
- testing and approval procedures;
- internal rules;
- risk management;
- interoperability and implementation specifications.
The final decision on the launch of the digital euro will be taken after all preparatory measures are finalized and the relevant legislation is adopted. European Commission members see the CBDC primarily as an alternative to cash, emphasizing the potential of the digital euro for personal transfers between EU citizens. At the same time, the ECB insists that the ability to store and use digital currency should have restrictions at the code level.
