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ECB invites industry experts to advise on offline deployment of digital euro

The European Central Bank is inviting experts from the mobile tech industry to advise on the development of an offline model for digital euro payments.

4 comments

ECB invites industry experts to advise on offline deployment of digital euro

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The ECB is investigating the deployment of the digital euro’s offline functionality on an embedded Secure Element (eSE) and embedded SIM (eSIM) of end-user’s devices.

To improve its understanding of market, technical, and business aspects of such a deployment, it is calling for input from Original Equipment Manufacturers of mobile devices, Mobile Network Operators and specialised Trusted Service Managers.

The ECB is currently almost mid-way through a a two-year preparation phase aimed at laying the foundations for the potential issuance of a digital euro. As part of this, the Eurosystem is carrying out a deeper dive into technical aspects of the digital euro, such as its offline functionality and a testing and rollout plan.

The regulator says it wans to engage in technical talks on methods for deploying applets on embedded Secure Elements, as well as the business considerations involved, including the setup and the roles of actors in this process.

The talks, in the form of a 60 minue Q&A, are expected to take place between 16th - 30th September and will be held as closed sessions with members of the ECB’s digital euro project team.

To take part, the ECB is inviting interest parties to email DigitalEuro@ecb.europa.eu by 10th of September 2024, describing, in no more than 300 words, their expertise in the specified fields.

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Comments: (4)

Steven Hatton

Steven Hatton Co-founder & Director at Trusek Ltd

Can someone please explain to me the benefits of a Bank issued digital coin?

What will it achieve that cannot be achieved with existing technology? 

Arjeh Van Oijen

Arjeh Van Oijen Head of Product Management at Icon Solutions

not being completely dependent of commercial parties for all payments and the ability to pay anonymously. The use of physical cash becomes increasingly harder due to decline of ATMs and cash is not accepted everywhere anymore.

Steven Hatton

Steven Hatton Co-founder & Director at Trusek Ltd

The Central Banks are looking to create a system that enables anonymous payments?

We already have the ability to move money electronically as a replacement of cash.

 

Paul Krogdahl

Paul Krogdahl Director, Technology Strategy & Advisory Services at Samlink

Steven, to best explain this we need to first define the difference between public and private money.

Public money is money issued by the central bank, such as cash today and as such a central bank liability.

Private money is money issued by a private financial entity, such as a bank and is not a liability of the central bank.

Today, the only true form of central bank liability (public money) that we have is cash, and we have no true representation of public money in digital form. As soon as you migrate cash into any digital media, it becomes private money.

A CBDC is a way for central banks to represent public money in digital form, giving you all the benefits and  expectations that you get with existing public money today.

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