International financial group finds gaps in digital euro legislative package
The Institute of International Finance (IIF) has actually released an evaluation of the European Commissions proposed legislation on the digital euro. It ranked the digital euro costs introduced in June and the effect assessment that accompanied it. Related: IBM offers guidance for effective application of digital euroPayment services service providers (PSPs) would have restricted ability to recuperate the costs of carrying out digital euro services, such as connecting to the infrastructure and developing wallet software application, and caps are positioned on charges. Source: ecb.europa.euPrivacy controls on the digital euro have yet to be defined, the study noted, and it is not clear what PSPs will be needed to do to satisfy the requirements, or if they it will even be possible for them at the time of introduction of the digital euro.
Governance and conflicts of interest were not resolved in the legislation, the IIF stated. As the bank manager and “company, administrator, and fee-setter for a digital euro,” the European Central Bank (ECB) might find itself in clashing roles of regulator and operator. There is no independent oversight imagined for it.The IIF also duplicated its position on interoperability. It said:” There is little-to-no value in choosing recreating parallel systems that could tie up capital and liquidity, face comparable pain points, and be pricey. […] A CBDC would require to run on platforms where other digital currencies otherwise run.” The legal proposal for the digital euro is being established in tandem with its facilities. The digital euro is expected to be in the investigative phase through October. After that, the ECB might decide to start testing technical and organization services. A live digital euro might just be released after the passage of the legislation.Magazine: Crypto City Guide to Prague: Bitcoin in the heart of Europe
The Institute of International Finance (IIF) has published an evaluation of the European Commissions proposed legislation on the digital euro. Related: IBM offers assistance for successful execution of digital euroPayment services service providers (PSPs) would have limited capability to recover the costs of implementing digital euro services, such as linking to the infrastructure and creating wallet software application, and caps are placed on charges. Source: ecb.europa.euPrivacy controls on the digital euro have yet to be specified, the study kept in mind, and it is not clear what PSPs will be needed to do to satisfy the requirements, or if they it will even be possible for them at the time of introduction of the digital euro.