The EACB paper describes some of the possible implications the digital euro may have on the competitive landscape in the European payments ecosystem. Where relevant, a link is made to the impact for other financial products and services of banks and cooperative banks, such as deposits, as the impact of the digital euro on the competitive landscape extends beyond payments.
As banks, we recognise that competition and having digital means of payment that are universally accepted through the euro area would be beneficial for the European economy, society and citizens. Nowadays, private initiatives for retail payment solutions such as European Payments Initiative (EPI) are supported also by the European Central Bank (ECB) if they fulfil five key objectives, namely European identity and governance, pan-European reach, and, in the long-run, global reach.
While on the one hand expressing support to private initiatives, the ECB is, on the other, planning at the same time to enter the European payments ecosystem as a market player. This is being done to maintain access to central bank money and monetary anchoring, but also to provide a European alternative to non-European (foreign) payment providers.
We invite the European Commission’s DG Competition to look in-depth into the possible unintended consequences of the digital euro legislative proposal and the digital euro project more broadly by including banks and other payment service providers in its research.