The Association of German Banks has appealed to the European Central Bank (ECB) to permit commercial financial institutions to participate in the creation and launch of the digital euro.
They believe that the digital currencies of the Central Bank represent the next phase in the development of the payments sector, and should be viewed as a complementary addition to cash.
The Association feels that commercial banks are better equipped to understand the needs of their customers and have existing relationships with both individuals and businesses, and thus should be given the responsibility of introducing the digital euro into circulation.
German banks suggest that the ECB should allow them to experiment with use cases for the state stablecoin, but with certain limits in place, such as restricting the amount that retail users can hold in digital euros and prohibiting organizations from using it as a store of value.
These measures would ensure that commercial banks remain integral players in the financial system as the digital euro becomes more widespread.
For the digital euro to seamlessly integrate into the current financial system, it must be accessible to retail customers and meet European data protection requirements.
Additionally, the bankers emphasized the need for the digital euro to be available for offline payments. The ECB has been exploring the possibilities of a digital euro since 2021 and has already held public consultations on the matter.
The regulator has selected companies to prototype the digital euro and is working on a legislative framework, including a bill submitted to the European Parliament mandating the adoption of the digital euro throughout the EU.