The European Central Bank is considering making a new digital app for the euro. This app would have basic payment features and create a standard way for end users to connect with intermediaries.
Fabio Panetta, a member of the ECB board, explains the plan by saying that the primary goal of making such an app available is to give the market the minimum amount of development it needs. This ensures that intermediaries, even smaller ones that might not want to pay the costs of setting up their payment interface, keep their roles in the digital distribution of euros.
At the same time, the app would meet the needs of some end users who have asked for an independent access channel with basic features. Consumer groups and market surveys have said this.
“The app would ensure that no matter where you travel in the euro area, the digital euro would always be recognized, and you would be able to pay with it,” says Panetta. “The first releases will likely offer contactless payments, QR codes, and an easy way to pay online.”
In his talk to the EU Committee on Economic and Monetary Affairs, Panetta stressed that everyone can use the digital euro and that it will never be programmable money. Instead, intermediaries will be in charge of developing conditional payments and other advanced services.
“The ECB would not set any limitations on where, when, or to whom people can pay with a digital euro,” he says. “That would be tantamount to a voucher. And central banks issue money, not vouchers.”
