IBM recently shared its ideas on how to make the digital euro a success in a blog post. It suggested five items for designers to help the European Central Bank digital currency “enter the highly competitive, multifaceted, and heterogeneous payments landscape in the Eurozone.” The first point, “Build on existing rails,” is already foreseen in the European Commission (EC) legislative proposal, but can be extended. Simplicity and familiarity are key to initial adoption.Intermediaries will also have a role to play in digital euro acceptance, and the digital currency should be designed to accommodate their needs. Standardization of application programming interfaces (APIs) would simplify integration and encourage competition. The EC proposal includes strong offline privacy guarantees that could be extended to online activities to ensure end-to-end transaction privacy.Distributed ledger technology is not essential for the creation of a digital euro, but blockchain technology offers the most benefits. Its operation need not be any more carbon-intensive than non-blockchain systems. IBM advises to start with a minimal viable product for faster time to market and a sandbox to deal with the great complexity of the future digital euro’s operating environment.

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Information	Details
Geography	Europe
Countries
Sentiment	neutral
Relevance Score	8
People	None
Companies	European Central Bank, European Commission (EC), European Union, European Commission legislative proposal, IBM
Currencies	Euro, APENFT, The APIS, Ethereum, Bitcoin
Securities	None