The European Central Bank (ECB) has stated that the digital euro may only function online and rely on third parties, such as banks, to confirm transactions. The ECB is developing guidelines (Peer-to-Peer Validation) that allow private sector mediators to disseminate the central bank’s digital currency (CBDC). Peer-to-Peer Validation On Hold In a document released on Thursday, peer-to-peer validation possibilities were placed on hold as the ECB’s governing council prepared to determine whether to release a digital edition of the euro, scheduled to be released in September 2023. The ECB would investigate employing individuals to confirm offline transactions, but the time to market for this approach is more unpredictable compared to one using traditional mediators like banks. Eurosystem to Maintain Authority Fabio Panetta, a member of the ECB executive board, stated to legislators that the Eurosystem must maintain complete authority over digital euro issuance and settlement. However, he also said that authorities are also considering the rules that outline how the private sector engages in disseminating the digital euro. Panetta stated that the rules for the digital euro concept, describing which businesses can join and how they would function, would begin to be written. The same user experience would be guaranteed wherever the system is used throughout the euro area with only one brand. ECB Investigates Distributed Ledger Techno...
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