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Digital euro: role and challenges in the EU payment landscape: intermediation, inclusion, financial stability, AML, and data privacy

Day 2 Afternoon

Thursday 14 September

Room :



Burkhard Balz
Member of the Executive Board - Deutsche Bundesbank
Public Authorities
Amalia  Cordero
Head of Unit Financial Legislation, Secretary General of the Treasury and International Finance - Ministry of Economy and Digitalization, Spain
Alexandra Jour-Schroeder
Deputy Director-General - DG for Financial Stability, Financial Services and Capital Markets Union, European Commission
Mindaugas Liutvinskas
Vice Minister - Ministry of Finance of the Republic of Lithuania
Industry Representatives
Rafael Marquez
President, International Card Services - American Express (HQ)
Karolin Schriever
Executive Member of the Board - Deutscher Sparkassen- und Giroverband (DSGV)
Pablo Zalba
Partner - Deloitte 

Context and objectives of the session

The Digital Euro has sparked considerable interest and posed significant questions within the European Union’s (EU) payment landscape. Key concerns encompass financial intermediaries, inclusion, financial stability, anti-money laundering (AML), and data privacy.
One critical issue is the role of financial intermediaries in the Digital Euro ecosystem. The Eurosystem envisions private sector entities, particularly banks, as responsible for distributing and managing the Digital Euro. Striking the right balance between central bank-issued money and commercial bank money is essential for an efficient payment system.
Ensuring financial stability is a top priority when introducing the Digital Euro. Mitigating risks like depositor outflows from banks and uncontrolled shifts of deposits to central banks is crucial. Measures like setting limits on holdings and promoting the use of Digital Euro as a payment method can balance stability and adoption.

Broad inclusion is another key objective. The Digital Euro should be accessible to all segments of society without barriers, accommodating diverse payment preferences with user-friendly solutions.

Responsible data usage and a strong focus on data privacy are crucial for growth, innovation, and trust. Compliance with GDPR and defining the line between privacy and anonymity are essential. Simultaneously, preventing money laundering and terrorist financing is paramount, necessitating robust AML and KYC requirements.

The coexistence of the Digital Euro with other digital currencies raises important questions. This session aims to identify the Digital Euro’s potential benefits, opportunities, and consequences for payment service providers and banks. It also explores potential solutions and alternative policy responses, such as targeted regulation and EU-based payment schemes, to address challenges and competition from large online platforms.

Main questions to be addressed.

  1. How will the digital euro be seamlessly integrated into the daily financial transactions of EU and non-EU citizens, considering accessibility, payment methods, and global benchmarks, while also ensuring inclusiveness and interoperability with other digital currencies?
  2. What are the main legal and technical features of the digital euro contributing to financial stability? How is money laundering risk addressed and to what extent does this limits privacy?
  3. To what extent and by what means is the digital euro preserving incumbent financial institutions’ traditional roles and minimizing disruptive effects on these players, including technical, accounting, and distribution aspects, while defining roles for central banks, banks, and payment service providers?