Digital euro: EBF presents its views to ECB
BRUSSELS, 13 January 2021 – The European Banking Federation has submitted its views on the introduction of a digital euro as a central bank digital currency to the European Central Bank, which closed its public consultation on this topic last night.
CLICK HERE to read the EBF submission.
The EBF takes note of the work that is done by the Eurosystem to investigate a digital euro that could be aimed at a retail audience, should the need arise. A central bank digital euro should first and foremost be a viable and optimal solution to a clearly defined unserviced need in the market, for which no other more efficient solution exists. In addition, it should benefit private individuals and corporates and the economy as a whole, while avoiding destabilizing the financial system. Therefore, before the ECB decides to issue a CBDE, it should be very clear what a CBDE can contribute that is not already covered or can be covered by private payment and deposit solutions.
Taking into account their crucial position in the financial and payment systems, and for the financing of the economy, European banks welcome a continuous exchange with the ECB on the digital euro project. The underlying needs, possible – effective – alternatives under these objectives as well as the design principles should be further explored with representatives of the European society at large. EBF welcomes detailed discussions with sufficient time prior to a decision on a project launch.
The EBF stands ready to engage with the ECB in conducting additional assessments and applying investigative tools beyond the launched public consultation.
FOR MORE INFORMATION:
Alexandra Maniati, Director, Innovation & Cybersecurity
a.maniati@ebf.eu
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]]>Publication date: 12 December 2018
The EBF published its official position on crypto-assets and initial coin offerings (ICO).
Key recommendations
◆ Ensure an adequate level of consumer protection and transparency by warning investors of the risks involved with transacting and investing in crypto-assets.
◆ In order to avoid overregulation and ensure that the marketing of these assets offers the same guarantees as any other financial assets currently available and supervised by regulators, assess further the current regulatory framework: a) to promote the use of the current regulation if it is already sufficient to address risks related to crypto-assets (e.g. regulating security tokens under the existing regulation on financial assets). b) to identify if regulation is either absent or require adjustments. c) take actions to cover unregulated “grey zone”.
◆ Address the specific AML risks associated with the various stages in a crypto-asset lifecycle by establishing clear regulatory requirements and supervision criteria.
◆ Encourage continued research on the possible and innovative uses of DLT technology and new way to use DLT for achieving new operational improvements and identifying cost-saving opportunities.
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]]>EBF response to the Commission consultation on crypto-assets
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Publication date: 3 April 2020
The European banks welcome the chance to engage with the European Commission on the issue of crypto-assets, reflecting an innovative aspect of the digital transformation in the financial sector.
- Banks recognizing the general potential of DLT technology, but are aware of related challenges and risks. The EBF supports the careful attention that EU institutions are paying to the risks of crypto-assets, e.g. in terms of implications for the monetary policy.
- The EBF likes to strongly emphasis the important principle of “same services, same risks, same rules” for regulatory activities targeting a crypto-assets ecosystem. The principle allows to mitigate risks appropriately, while incorporating new activities in the financial regulatory framework. It grants the flexibility required to make the framework future-prove.
- The EBF supports a technological neutral approach to provide clarity to the market regarding crypto-assets’ applicable regulatory requirements.
- The EBF calls upon regulators to ensure a necessary balance between innovation and proper protection of investors and consumers.
- The EBF highlights the importance of a level playing field regarding regulatory safeguards for crypto-assets, to be fostered by considerations of a pan-European approach rather than detrimental regulatory fragmentation across different countries.
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CONTACT:
Julian Schmücker, Digital & Innovation Officer, j.schmucker@ebf.eu
Media:
Nahuel Mercedes, Communications Officer, n.mercedes@ebf.eu
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About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
Subscribe to the EBF Weekly + FinReg Agenda
Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
Subscribe to the EBF Morning Brief
The EBF Morning Brief is published Monday through Friday morning and brings you the top banking headlines, relevant announcements from the EU institutions and the latest from the EBF and its members, national banking associations in 32 countries in Europe. CLICK HERE TO SUBSCRIBE
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]]>FROM THE EUROPEAN BANKING FEDERATION:
EU digital finance package is major step forward
BRUSSELS, 24 September 2020 – Today’s European Commission adoption of a comprehensive package on digital finance is a major step towards the comprehensive regulatory framework for financial services that will help make the European Union fit for the digital age, according to the European Banking Federation.
The package consists of important Commission strategies on digital finance and retail payments, together with legislative proposals on operational resilience and crypto assets. The EBF and its members have contributed in all relevant consultations.
The EBF shares the Commission’s ambition that Europe should drive digital finance with strong European market players in the lead. The EU financial sector should embrace all the opportunities brought by digitalisation. The benefits of digital finance should be available to European consumers and businesses and Europe should promote digital finance based on European values and a sound regulation of risks.
The EBF believes that these objectives can only be achieved if the EU framework strives for:
- a technology-neutral and innovation-friendly EU financial services framework
- fair competition in a digitally transformed market, characterised by a level playing field, with proportionate regulation – ‘same activities, same risks, same rules, same supervision’ principle
- cross-sectoral data sharing for the benefit of European consumers and businesses
- balanced innovation and proper protection of investors and consumers
- a resilient financial ecosystem with common minimum security requirements, following a risk-based approach, including critical third-party interdependencies, while avoiding disproportionate burden on financial institutions
- stronger sovereignty in payments through pan-European initiatives.
Says Alexandra Maniati, Director of Cybersecurity & Innovation at the EBF:
“The Covid-19 crisis has strongly highlighted how important all aspects of digital transformation are for our society. This ambitious Commission initiative for the financial sector comes at a crucial time. The EBF is keen to continue working with policy-makers so that European ideas shape the future of digital finance; with an innovative European banking sector, that is resilient and globally competitive, in a level playing field, to the benefit of European consumers and businesses.”
The EBF key messages in the areas highlighted by the Commission packages are as follows:
Digital Finance Strategy
The EBF supports the Commission’s aim to alleviate fragmentation in the Single Market for digital financial services and underlines that cross-border coordination within the EU and globally will positively affect the ability of banks to leverage new technologies, such as cloud computing and AI, to help boost efficiency and deliver improved services for consumers. The EBF welcomes the Commission’s ambition to promote a data-driven financial sector. However, initiatives to increase data sharing should not focus on financial services where this has been done already through previous legislation, but instead should take a view to establish a cross-sectoral data sharing framework for the benefit of consumers and firms. EBF members also see merit in exploring together with policy-makers the potential of a European digital identity based on the e-IDAS framework, taking into account existing national ID schemes and ensuring the necessary safeguards, interoperability and public-private cooperation to achieve the desired scale.
Retail Payments
Recently payments have been increasingly highlighted as an area of strategic importance for European sovereignty and the international role of the euro. At the same time, the payments market is a highly competitive and innovative area of financial services, at the forefront of digitalization. The Commission’s aim to support e.g. competitive home-grown and pan–European payment solutions is shared by the EBF. The Federation also supports the vision of the strategic value of payments and looks forward to contributing to shape the future outlook of the European payments market.
Operational Resilience
The impact of the Covid-19 pandemic has illustrated increased reliance on digital and remote technologies. The EBF welcomes the European Commission’s recognition of the need to reinforce the digital operational resilience of financial market participants. The interconnectedness of all actors within the financial ecosystem, including third party providers, and the evolution of ICT risks highlight the need for a common level of minimum security for the financial sector as a whole, based on international coordination. The EBF encourages the European Commission to address the upcoming reinforcement of operational resilience according to the responsibilities of market participants in customer-provider relationships for innovative service solutions, respecting the principle of proportionality.
Crypto assets
The EBF welcomes the Commission addressing the opportunities, challenges and risks by crypto assets in a holistic approach, aiming to support blockchain technology’s potential throughout Europe. It is important to balance innovation and protection of consumers and investors. Where crypto assets qualify under existing regulation, protection is offered. But with emerging, non-covered crypto asset types – potentially having significant impact on consumer protection and monetary policy– the regulatory framework should answer appropriately. Based on the principle ‘same services, same risks, same rules’, risks need to be prevented by addressing issues such as transparency and supervision, avoiding fragmentation across the EU.
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MEDIA CONTACT:
Raymond Frenken, Director of Communications
r.frenken@ebf.eu +32 496 52 59 47
ABOUT THE EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
Subscribe to the EBF Weekly + FinReg Agenda
Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
Subscribe to the EBF Morning Brief
The EBF Morning Brief is published Monday through Friday morning and brings you the top banking headlines, relevant announcements from the EU institutions and the latest from the EBF and its members, national banking associations in 32 countries in Europe. CLICK HERE TO SUBSCRIBE
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