Digital Euro Payments: Exploring Conditional Transactions Beyond Scheduled Transfers

The European Central Bank (ECB) is exploring the potential of digital euro payments that only occur when specific conditions are met, moving beyond traditional scheduled transfers. According to ECB executive board member Piero Cipollone, this concept of conditional payments holds significant promise.

Conditional payments, as explained by Cipollone, are transactions that only execute when a predetermined condition is fulfilled. This is a departure from current payment systems, which are primarily time-based. “We think we can do better than that,” Cipollone said, highlighting the limitations of traditional payment methods.

Blockchain Technology Not Required

Interestingly, Cipollone emphasized that blockchain technology is not a necessity for implementing conditional payments. These transactions can function on traditional ledgers, making them more accessible and easier to integrate into existing financial systems. For example, train passengers could automatically receive refunds if their train is late, eliminating the need for manual claims.

The ECB has received an overwhelming response to its call for proposals, with over 100 offers submitted. Cipollone expressed his surprise at the interest, stating, “People want to experiment with new ideas.” The ECB will be experimenting with these ideas over the next six months and will subsequently prepare a report.

Stablecoins: A Concern for the ECB

Cipollone also addressed the topic of stablecoins, which remain a concern for the ECB, particularly if used for payments in Europe. He warned that relying on dollar-based stablecoins could lead to a shift in deposits to the U.S., adding that “the political world is becoming more alert to this.”

Digital Euro Project Update

The digital euro project is progressing, with the ECB currently selecting suppliers. However, contracts will only be triggered if the Governing Council approves the currency. The digital euro’s rulebook is nearing completion, but its implementation depends on the approval of EU legislation. A decision on moving the project forward is expected by November 2025, with actual issuance contingent on the presence of necessary legislation.

For the latest updates on the digital euro and other cryptocurrency news, visit Global Crypto News.

“We were surprised to receive 100 offers. People want to experiment with new ideas. We will be doing that for the next six months and we will then prepare a report.” – Piero Cipollone

Tips for investors:

  • Stay informed about the digital euro project and its potential implications for the cryptocurrency market.
  • Understand the concept of conditional payments and their potential applications.
  • Monitor developments in the stablecoin market and their potential impact on the ECB’s policies.
Post Views: 1