Open Forum on the Digital Euro and Payment Transactions
CBDC, or Central Bank Digital Currency, is a type of digital currency issued and regulated by a country’s central bank. Without replacing existing payment methods, CBDC opens new possibilities for improving payment systems. Numerous countries are actively developing similar projects. The Digital Euro project was initiated by the European Central Bank (ECB) in July 2021. On June 24, 2024, the ECB released its first report on the initial phase of the project, which began in November 2023.
As a complex, multifaceted initiative, CBDC has garnered substantial support from various stakeholders who see it as a way to modernize the economy, improve transaction efficiency, and enhance the security of the monetary system. At the same time, it has raised notable concerns regarding privacy, the centralization of financial power, and the potential exclusion of vulnerable populations who may not have access to digital platforms. For this reason, the development and implementation of CBDCs require a collaborative approach, drawing on expertise from multiple fields.
The Austrian National Bank (OeNB) held a high-profile technical event on ‘Digital Euro and Payment Transactions’ to discuss the ECB’s ongoing developments. Representatives from the Austrian banking sector, academia, commerce, and consumer advocacy groups participated. Together with OeNB and ECB experts, they explored the digital Euro’s potential, perspectives, and requirements.
One of the crucial challenges in implementing the digital euro is ensuring the security of transactions and the protection of data. During the discussion, Matteo Maffei mentioned that the research community, including the CySec team, has developed a range of cryptographic protocols designed to secure privacy and meet regulatory guidelines for both cryptocurrencies and digital central bank currencies.
