Piero Cipollone from the ECB executive board revealed at Reuters that the ECB evaluates possibilities for digital euro payment expansion to cover conditional transactions beyond scheduled transfers. Cipollone advised Reuters that conditional payments function through predefined triggers that transform traditional time-based transactions according to his interview.
Today’s payment systems mainly allow one type of transaction that involves transferring a fixed payment to designated individuals at predetermined times according to Cipollone. The European Central Bank holds that its digital euro will provide a more flexible payment system which operates with superior efficiency.
“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
ECB Weighs Digital Euro Rollout
The use of blockchain technology is not necessary to execute conditional payment transactions according to Cipollone. The approach for these payments required a conventional ledger system according to his theory.
Cipollone showed the train passenger automatic compensation refund process as an example of how blockchain technology benefits users through instantaneous delayed train reimbursement. According to him, implementing these systems would establish a more efficient procedure that benefits users.
Cipollone revealed the digital euro project advances but refused to specify when its launch operations will begin. Suppliers for the project are under selection by the ECB though the Governing Council must validate the digital euro to finalize project contracts. Cipollone explained that EU legislation holds the power to determine when the digital euro system can begin operation although the digital euro’s rulebook preparation is complete.
The chief executive of the ECB discussed stablecoins as an issue that Europe currently faces strongly. Cipollone voiced concerns about stablecoins to be used as payment methods in the European market especially when they have U.S. dollar attachments.
High reliance on dollar-based stablecoins would lead to drain financial deposits from Europe into U.S. financial institutions creating a problem that has worried European politicians. Stablecoin policies from the ECB have mobilized political leaders to track down the developing dangers that digital assets create.
The decision regarding the digital euro development will reach its conclusion by November 2025. The realization of the digital euro depends on passing needed legislations before the planned issue date.
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