ECB Drafts First Chapters of Digital Euro Rulebook

The European Central Bank (ECB) Rulebook Development Group (RDG) has drafted the first chapters of a digital euro rulebook.

This first draft follows the legislative proposal and the digital euro design decisions approved by the ECB’s governing council, the ECB said in a Wednesday (Jan. 3) press release about the publication of a report summarizing the RDG’s progress on the project.

“A digital euro would be the first public European digital means of payment providing pan-European reach,” the report said. “To ensure a harmonious implementation, the Eurosystem is designing a digital euro payment scheme, consisting of a single set of rules, standards and procedures for the standardization of digital euro payments across the euro area.”

The first draft of the rulebook covers the functioning of all use cases and services relating to a digital euro, the high-level architecture and standards that should be considered around a digital euro, and the rights and obligations of members of the plan, according to the press release.

The development of this first draft has included involvement by consumers, retailers and intermediaries, and the draft has already been shared with RDG members for their review, the release said.

The RDG will consider making revisions to this first draft as it receives feedback, per the release. The draft will also be updated to reflect progress in the digital euro legislative process.

In addition, as it works to finalize the rulebook, the RDG will add sections covering minimum requirements for user experience; standards for branding and communication; certification; testing and approval procedures; internal rules; risk management; and specifications for interoperability and implementation, according to the release.

“The draft rulebook will be completed with additional chapters and finalized over the course of the digital euro preparation phase,” the report said.

The ECB launched what it said would be a two-year preparation phase for its digital euro on Nov. 1. The phase will involve finalizing a rulebook for a digital euro and finding providers that could help build a digital euro platform and infrastructure.

After two years, the ECB’s Governing Council will decide whether to move to the next stage of preparations, to set the stage for the possible issuance and rollout of a digital euro.