While legislation on the digital euro is still awaited, experts from the IT engineering company IBM decide to offer the European Commission (EC) five key tips for optimizing legislation to improve the viability of the digital euro. digital euro. It was in an official article published on his blog this Wednesday, August 30, 2023.
In short
- IBM advises the European Commission to draw inspiration from existing payment models to create a viable digital euro.
- IBM experts emphasize the importance of privacy for small payments and recommend a tiered ecosystem of intermediaries.
- To accelerate adoption, IBM suggests launching a minimum viable digital euro product in a sandbox.
IBM warns EC of complexity of European crypto environment
Extremely competitive, multifaceted, heterogeneous: these are the words that IBM experts used to describe the payments landscape in the euro zone.
In the official blog article published by IBM this August 30, 2023 To the European Commission, experts warned that such a context could delay the adoption of the digital euro as a means of payment if the legislation does not meet certain conditions. The company lists five irreducible conditions.
Drawing inspiration from existing models to improve the digital euro
According to IBM experts, the adoption of the future digital euro will be determined by its simplicity and its compatibility with other existing payment methods. They advise the EC to build the currency on existing models to have a more viable digital euro.
This will, they add, make it possible to have a uniform digital euro throughout the euro zone, accelerate its adoption and reduce the technical constraints linked to deployment.
For viable legislation, experts also propose an extension of the PSD2(3) directive with the establishment of a standard API for the digital euro for operators, FinTechs and third-party providers.
Think about intermediaries and confidentiality for small payments
If IBM experts return to the importance of confidentiality for low-value proximity payments and online confidentiality guarantees, they also place the cursor on “the need for an intermediary ecosystem […] at several levels.
The authors of the article propose that there be several intermediaries in the architecture of the deployment of the currency, to support small intermediaries, because they will participate in the acceptance of the digital euro.
Launch a minimum viable product in a sandbox to enter the market
In their article, IBM executives proposed that the EC adopt blockchain technology for the deployment of digital currency, to reduce its digital footprint and facilitate tokenized economies and virtual worlds, they issue a particular warning.
Due to the complexity of the digital euro’s operational environment, IBM suggests that the legislation provide for a minimum viable product in a sandbox to encourage rapid adoption of the digital currency.
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