Digital, programmable euro

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The digital, programmable euro describes the concept of a special digital form of the euro , as published in a position paper of the FinTech Council in July 2020. While with the digital euro the mere management of ownership of a euro amount is in the foreground (example: deposit in bank accounts ), the digital, programmable euro enables payment flows to be made programmable. For this reason, the digital, programmable euro promises enormous automation potential for industry and the financial sector . With the digital, programmable euro, a distributed ledger technology (DLT) or blockchain technology is typically used as the carrier platform. The International Monetary Fund (IMF) cites the programmability of money as one of the most important key differences between cash and a central bank digital currency (CBDC).

Example and demarcation

So far, business processes have usually been additively composed of the delivery process of a good , asset or service and the process of payment. Both sub-processes have so far been controlled in different IT systems , so that the business case is relatively slow and error-prone based on today's architecture.

The digital, programmable euro also enables the programming of cash flows through the use of smart contracts and thus promises an integration of delivery processes and payment transactions (Delivery vs. Payment, DvP). By using DLT in conjunction with smart contracts, payment flows can also be made programmable in token form outside of a centralized system, for example organized by a bank. This results in efficient payment processes that follow a certain logic. A digital, programmable euro thus enables automated processes and financial services, such as interest payments, loans, trust accounts, leasing and factoring in real time, and also generates new pay-per-use business models.

emission

The digital, programmable euro can be emitted by different parties. These include central banks ( digital central bank money, CBDC ), regulated financial institutions such as banks or e-money institutions (tokenized giral or e-money), or unregulated organizations ( stablecoins ). The underlying risk differs depending on the issuer. While stablecoins are exposed to high regulatory and counterparty risk, a CBDC as digital central bank money can be classified as risk-free.

Individual evidence

  1. ↑ Jonas Groß, Manuel Klein, Philipp Sandner: Digital Central Bank Currencies: Opportunities, Risks and Blockchain Technology . In: Economic Service . tape 2020 , no. 7 , 2020, p. 545-549 ( Wirtschaftsdienst.eu [accessed August 18, 2020]).
  2. ^ A Survey of Research on Retail Central Bank Digital Currency. Accessed August 18, 2020 .
  3. ↑ FinTechRat the Federal Ministry of Finance: Opinion: The digital, programmable EUR - German Federal Ministry of Finance - themes. Retrieved August 18, 2020 .
  4. ↑ Bank of England: Central Bank Digital Currency: opportunities, challenges and design. Accessed August 18, 2020 .
  5. ↑ The digital, programmable (blockchain) euro - background, opportunities and implementation. July 28, 2020, accessed on August 18, 2020 (German).
  6. ↑ Europe's answer to Libra. Retrieved August 20, 2020 .
  7. ↑ Manuel Klein, Jonas Groß, Philipp Sandner: The digital blockchain euro: Central bank digital currencies are the future . Ed .: ifo Schnelldienst. March 2020, No. 2020-03 .