Online transactions and payments between friends should be prioritised by the digital euro, according to documents posted on the European Central Bank’s website.
The slideshow has shown that other applications for the central bank’s digital money, such as paying taxes, gaining welfare payments, or making purchases in physical stores, would only come about in a later, second wave of advancements.
The European Central Bank is among the international authorities that are debating whether to issue a CBDC. Although a final decision is expected to arrive later this year, officials are already considering technical solutions and stating that numerous applications would be required to fulfil user wants and market gaps.
According to the document produced by the central bank’s CBDC project team, a “staggered approach” can help facilitate the end-user payment process and mitigate “implementation complexities” when attempting to launch all of the new systems at once.
A separate document prepared for the same meeting stated that private individuals should not be charged a penny for using digital euro in basic applications like onboarding and making payments.But, it noted that there may be new legislation to hinder banks from charging merchants excessive fees.
Payment service providers could charge businesses, although regulation might set expectations for merchant pricing in light of the prices of equivalent retail payment systems currently on the market.
