The European Central Bank (ECB) has published a report summarising the progress made by the digital euro scheme’s Rulebook Development Group (RDG).
This includes the first chapters of a digital euro rulebook which have been drafted by the RDG in line with the legislative proposal and the digital euro design decisions approved by the Governing Council of the ECB.
A digital euro would be the first public European digital means of payment providing pan-European reach. To ensure it is efficiently implemented the Eurosystem is designing a digital euro payment scheme, consisting of a single set of rules, standards and procedures for the standardisation of digital euro payments across the euro area. The scheme is being developed by the RDG, which was established a year ago.
What does the first draft cover?
This first draft covers the functional and operational models, including the end-to-end flows describing the functioning of all use cases and services relating to a digital euro. It outlines the technical scheme requirements and standards which should potentially be considered in a digital euro landscape as well as the adherence model which sets out the rights and obligations of scheme members in accordance with the draft legislation.
Over the past months, RDG members, representing consumers, retailers and intermediaries, have been involved in preparing various chapters of the first draft of the rulebook, which have been shared for an interim review, the ECB said. This process is an opportunity for all stakeholders involved to review the rulebook as it currently stands. It added that the RDG will consider making adjustments to this first draft based on feedback received as part of this process.
Beginning the preparation phase
In October, the ECB announced that it would begin the digital euro preparation phase following conclusion of a two-year investigation into its design and distribution. Based on the findings from the investigation, the ECB said it had designed a digital euro that could be used from person to person, at the point of sale, in e-commerce and in government transactions.
As part of its latest update, the ECB said that throughout the digital euro preparation phase, the RDG will carry out further work aimed at finalising the rulebook and will include additional sections on the following: minimum requirements for user experience, branding and communication standards, certification, testing and approval procedures, internal rules, risk management, and interoperability and implementation specifications.
