ECB stresses private-sector role in future digital payments system

The Governing Council of the European Central Bank (ECB) said that stepping up work on issuing the digital euro does not imply an intention to displace the private sector in providing payment services.

“Controlled private intermediaries are best suited to provide interface solutions and additional services, as well as to build new business models around the digital euro, if such a construct is introduced,” as stated in a statement.

The ECB noted that it had previously approved an update to the Eurosystem’s retail payments strategy. Under the strategy, the monetary authority “will expand active support for digitalisation and the creation of an innovative European payments system.”

Earlier, an ECB spokesperson said that the development of the plan to launch the digital euro will start in mid-2021.

The regulator’s head Christine Lagarde believes that the launch of the CBDC may take two to four years.

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