Focus Session with Businesses Associations and their members on the Digital Euro

The Central Bank of Cyprus held today its first focus session on the digital euro with business associations and their members, an event covered by the media.

The welcoming address and the presentation were delivered by Mr. Stelios Georgakis, Acting Senior Director of the Banking Operations Division of the Central Bank of Cyprus. Mr. Georgakis provided an overview of the reasons why the Eurosystem is conducting preparatory work for the potential issuance of the digital euro. He also outlined key principles underpinning its design and the legal act that is currently under negotiation, while highlighting the valuable input received so far from European business associations.

In his presentation, Mr. Georgakis addressed proactively potential questions and clarified various aspects, such as the maintenance of digital euro balances, accepting and making digital euro payments (including to non euro area countries), fees and charges for businesses, and so forth.

The key message of Mr. Georgakis was that over the next five years more innovation is expected, which will transform the way we make and receive payments; in this regard, businesses that prepare in good time will be at the forefront in the future payment landscape. Before concluding, Mr. Georgakis reiterated the main benefits that the digital euro could bring to businesses. In particular:

• An additional option for accepting payments for businesses that already accept comparable digital means of payment.
• Stronger bargaining position with providers of payment solutions, such that lower fees are agreed than the current ones.
• Completion of online purchases at checkout, due to the multiple technologies to be used. This will enhance the customer experience and widen the customer base of businesses.
• Improved liquidity, as businesses will receive digital euro payments instantly without additional costs, while being protected from overcharges through regulatory caps.
• Enhanced resilience, reducing Cypriot businesses' dependence on non-European payment providers.

After the close of the presentation, the attendees had the opportunity to ask clarifying questions.