European Central Bank Advances Digital Euro Plans With Focus on ATMs and Security

The European Central Bank is advancing its digital euro initiative by forming two specialized workstreams, G5 and B1. The ECB is encouraging collaboration with private-sector experts to create an attractive and functional digital currency across the euro area.

Through the Rulebook Development Group, established in January 2023 to draft the digital euro’s functional framework, the ECB unveiled two new workstreams: G5 and B1.

The G5 workstream is tasked with developing technical requirements for how a digital euro will interact with physical infrastructure. Its focus includes defining how payments are initiated at terminals via near-field communication (NFC) or QR codes, as well as integrating offline digital euro functionality into existing point-of-sale and ATM networks. The group is also set to explore so-called “softPOS” and mobile payment acceptance solutions.

The B1 workstream will design the “testing ecosystem” required to ensure all digital euro services meet strict security and performance standards. Members are charged with creating the rules for certifying end-user devices and payment service providers before they can access the digital euro network.

The ECB is emphasizing a collaborative approach, calling for private-sector experts to join these workstreams alongside Eurosystem representatives. Guiding principles for both groups state that while the digital euro must function as a standalone basic service, it must also be “attractive to all actors” and allow the private sector to build innovative services on top of it.

“Candidates should be inspired by the opportunity to shape the digital euro scheme’s rulebook,” the mandates state, noting that all intellectual property resulting from this work will reside with the ECB.

As these workstreams begin their development “sprints,” the vision of a digital currency that can be used at any European ATM or checkout counter moves closer to reality.