ECB launches survey towards CBDC development 

The Eurosystem has published a survey on its plans for trials and experiments on new technologies for wholesale central bank money settlement. 

The survey aims to gather feedback from market participants and stakeholders on the potential benefits, challenges, and use cases of a wholesale central bank digital currency (CBDC) that would facilitate cross-border payments and financial market infrastructures.

The survey, which is open until Nov. 15, covers four main topics:

• The current state of play and challenges in cross-border payments and financial market infrastructures.
• The possible features and design options of a wholesale CBDC.
• The potential impact and implications of a wholesale CBDC on the financial system and the economy.
• The possible scenarios and use cases for testing and experimenting with a wholesale CBDC.

The survey is part of the Eurosystem’s ongoing work exploring the feasibility and desirability of issuing a digital euro for retail and wholesale purposes. The Eurosystem has already launched a public consultation on a retail digital euro, which would complement cash and offer a secure, accessible, and innovative means of payment for the general public. The results of the consultation will be published in early 2024.

The Eurosystem has also published a report on the digital euro’s legal, technical, and policy aspects. It outlines different scenarios that could require the issuance of a CBDC and presents various design options and their implications. The report states that a digital euro would be an electronic form of central bank money accessible to all citizens and firms. It would not replace cash but rather complement it as a means of payment. It would ensure privacy, security, efficiency, and interoperability within the European payments system.

The Eurosystem stresses that a decision has yet to be made on introducing a digital euro. The survey and the analysis of its results will be an essential input for such a decision. The Eurosystem will also conduct experiments and engage with other central banks and authorities to explore the feasibility and implications of a CBDC.