Changes from report parliamentary committee draft to report parliamentary committee draft

AddedArticle 2 – paragraph 1 – point 26: 26. ‘switching’ means, upon an online digital euro user’s request, transferring from one payment service provider to another either the information about all or some online digital euro payment services, including recurring payments, executed on an online digital euro payment account, or the digital euro holdings from one online digital euro payment account to the other, or both, with or without closing the former online digital euro payment account, while maintaining the same account identifier;

AddedArticle 2 – paragraph 1 – point 27: 27. ‘user identifier’ means a unique identifier created by a payment service provider distributing the online digital euro that unambiguously differentiates, for online digital euro purposes, digital euro users but that is not attributable to an identifiable natural or legal person by the European Central Bank and the national central banks;

AddedArticle 2 – paragraph 1 – point 28: 28. ‘user alias’ means a unique pseudonymous identifier used to protect user’s identity when processing online digital euro payments that can only be attributable to an identifiable natural or legal person by the payment service provider distributing the online digital euro or by the digital euro user;

AddedArticle 2 – paragraph 1 – point 29: 29. ‘user authentication’ means a unique piece of information created by the payment service provider distributing the online digital euro that, together with the user identifier, allows a digital euro user to prove ownership of the online digital euro holdings recorded in the digital euro settlement infrastructure;

AddedArticle 3 – paragraph 1: 1. The offline digital euro is hereby established as a digital form of the single currency.

AddedArticle 3 – paragraph 1 a (new): 1a. The establishment of the online digital euro as a digital form of the single currency shall be subject to the condition set out in paragraphs 1b and 1c.

AddedArticle 3 – paragraph 1 b (new): 1b. The European Central Bank shall inform the Commission of the completion of the preparatory work for the issue of the offline digital euro referred to in Article 4(2a) immediatelly after its completion. Taking into account the European Central Bank’s information, the Commission shall assess whether pan-European sovereign retail payment solutions operate and enable payments in all euro area Member States with regard to person-to-person, point-of-sale and e-commerce payments, either directly or through interoperability with other European sovereign retail payment solutions. Within six months of receipt of the European Central Bank’s information pursuant to the first subparagraph, the Commission shall submit a report to the European Parliament and to the Council, setting out the conclusions of its assessment pursuant to the second subparagraph. In the report referred to in the third subparagraph, the Commission shall also assess: (a) the progress of Pan-European sovereign payment solutions with regard to providing greater European sovereignty and resilience in payments, (b) the impact of Pan-European sovereign payment solutions on competition and innovation on the payment markets.

AddedArticle 3 – paragraph 1 c (new): 1c. In the event the report referred to in paragraph 1b, third subparagraph concludes a negative assessment for a pan-European sovereign retail payment solutions pursuant to paragraph 1b, second subparagraph, the Commission is empowered to adopt a delegated act to declare that absence. Without prejudice to Article 4(2c), the online digital euro shall be considered to be established on the date of entry into force of that delegated act.

AddedArticle 3 – paragraph 1 d (new): 1d. The Commission shall adopt any such delegated act within six months of submitting its report to the European Parliament and the Council pursuant to paragraph 1b, third subparagraph.

AddedArticle 4 – paragraph 1: 1. In accordance with the Treaties, the European Central Bank shall have the exclusive right to authorise the issue of the digital euro, and the European Central Bank and the national central banks may issue it.

AddedArticle 4 – paragraph 2 a (new): 2a. The European Central Bank shall conduct without delay all the technical and organisational tasks for the issue of the offline digital euro, in particular: / (a) the completion of the rulebook; / (b) the necessary infrastructure development and deployment; / (c) all the organisational arrangements; / (d) governance provisions; and / (e) a successful pilot testing with real end users in a controlled test environment.

AddedArticle 4 – paragraph 2 b (new): 2b. The European Central Bank shall conduct all the technical and organisational tasks for the issue of the online digital euro.

AddedArticle 4 – paragraph 2 c (new): 2c. After the authorisation of the issue of the digital euro, the European Central Bank shall provide for a roll-out phase of at least 24 months, for both the offline and the online forms, to ensure a secure, resilient and gradual adaptation by the Eurosystem, payment service providers and digital euro users.

AddedArticle 5 – paragraph 1: 1. The digital euro shall be governed by the provisions of this Regulation, supplemented by the delegated acts that the Commission is empowered to adopt pursuant to Articles 3, 11, 16, 34, 35, 36, 37 and 38.

AddedArticle 5 – paragraph 4: 4. In accordance with Article 2(10) of Regulation (EU) 2021/1230, the provisions of that Regulation shall apply to digital euro payment transactions.

AddedArticle 5 – paragraph 5: 5. Without prejudice to Article 37 of this Regulation, Directive (EU) 2024/1640 and Regulation (EU) 2023/1113 shall apply to digital euro payment transactions.

AddedArticle 6 – paragraph 3: 3. Directive (EU) 2024/1640 shall govern the supervision by competent authorities, the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning the activities of Payment Services Providers in relation to the digital euro for the purpose of ensuring compliance with Chapter IX of this Regulation.

AddedArticle 6 – paragraph 5: 5. Member States shall ensure that adequate measures are in place to raise awareness among the public about the availability and features of the offline digital euro and possibilities of access to the offline digital euro.

AddedArticle 6 – paragraph 5 a (new): 5a. Member States shall ensure that adequate measures are in place to raise awareness among the public about the availability and features of the online digital euro and possibilities of access to the online digital euro, upon its establishment in accordance with Article 3.

AddedArticle 8 – paragraph 1: deleted

AddedArticle 8 – paragraph 2: 2. The digital euro shall have legal tender status for payments of a monetary debt denominated in euro to a payee residing or established in the euro area.

AddedArticle 9 – paragraph 1 – point a: (a) where the payee is an enterprise which employs fewer than 50 persons or whose annual turnover or annual balance sheet total does not exceed EUR 10 million, or is a non-profit legal entity as defined in Article 2, point (18), of Regulation (EU) 2021/695 of the European Parliament and of the Council44;

AddedArticle 9 – paragraph 1 – point c: (c) where the payee is a natural person acting as self-employed in a commercial activity or in the course of a purely personal or household activity;

AddedArticle 10 – paragraph 1: Payees subject to the obligation to accept the digital euro shall use only contractual terms that have been individually negotiated or commercial practices that have the objective or effect of excluding the use of the digital euro by payers of monetary debts denominated in euro. / Contractual terms or commercial practices as referred to in the first subparagraph shall not be binding on the payer. / Contractual terms shall not be regarded as having been individually negotiated where they have been drafted in advance and where the payer has not been able to influence their substance, particularly in the context of a pre-formulated standard contract.

AddedArticle 11 – title: Other adequate exceptions of a monetary law nature

AddedArticle 11 – paragraph 1: The Commission is empowered to adopt delegated acts in accordance with Article 38 to supplement this Regulation by identifying other adequate exceptions of a monetary law nature to the principle of mandatory acceptance. Those exceptions shall be justified by an objective of public interest and, proportionate to that aim, shall not undermine the effectiveness of the legal tender status of the digital euro, and shall only be permitted provided that other means for the payment of monetary debts are available. When preparing those delegated acts, the Commission shall consult the European Central Bank and, where non-euro area Member States are concerned, the relevant national central bank.

AddedArticle 13 – paragraph 1 – subparagraph 1 – introductory part: Within the framework of Directive (EU) 2015/2366, payment service providers may provide the digital euro payment services set out in Annex I to this Regulation for offline digital euro and in Annex Ia to this Regulation for online digital euro to:

AddedArticle 13 – paragraph 1 – subparagraph 2: The European Central Bank may restrict the access to and use in time of the online digital euro for the digital euro users referred to in points (b) and (c) subject to the conditions laid down in Article 16.

AddedArticle 13 – paragraph 1 – subparagraph 2 a (new): The access to and use of the automatic funding and defunding of the online digital euro shall be restricted in the cases referred to in point (c).

AddedArticle 13 – paragraph 2: 2. Payment service providers that provide servicing payment services within the meaning of Directive (EU) 2015/2366 shall enable online digital euro users to manually fund or defund their online digital euro payment accounts, whether held within the same or another payment service provider, from or to non-digital euro payment accounts, or offline digital euro device, or euro banknotes and coins when a payment services provider provides cash services, subject to any limitations laid down in Article 16 of this Regulation.

AddedArticle 13 – paragraph 2 a (new): 2a. Payment service providers that provide servicing payment services within the meaning of Directive (EU) 2015/2366 shall enable online digital euro users to automatically fund or defund their online digital euro payment accounts held within the same payment service provider, from or to non-digital euro payment accounts, subject to any limitations laid down in Article 16 of this Regulation.

AddedArticle 13 – paragraph 2 b (new): 2b. Payment service providers shall make available manual funding and defunding functionalities to natural persons using the offline digital euro from cash, an online digital euro account, or any non-digital euro payment account designated by the offline digital euro user subject to any limitations laid down in Articles 16 and 37.

AddedArticle 13 – paragraph 2 c (new): 2c. Payment service providers shall enable their merchant clients to automatically defund their offline digital euro devices to non-digital euro payment accounts designated by the merchant.

AddedArticle 13 – paragraph 3 – point a: (a) at any point in time where funding and defunding take place through non-digital euro payment accounts, through offline digital euro devices or online digital euro payment accounts;

AddedArticle 13 – paragraph 4 – subparagraph 1 – introductory part: Payment service providers providing account servicing payment services within the meaning of Directive (EU) 2015/2366 shall enable online digital euro users:

AddedArticle 13 – paragraph 4 – subparagraph 1 – point a: (a) to have their online digital euros in excess of any limitations adopted in accordance with Article 16 automatically defunded to a non-digital euro payment account, where an online digital euro payment transaction is received;

AddedArticle 13 – paragraph 4 – subparagraph 2: For the purpose of points (a) and (b), and upon prior approval by the digital euro users, payment service providers shall link each online digital euro payment account to a single non-digital euro payment account designated by the digital euro users. Digital euro users shall be allowed to have that designated non-digital euro payment account with a different payment service provider than the one where a given online digital euro payment account is held.

AddedArticle 13 – paragraph 7: 7. Natural persons shall not have more than one offline digital euro device.

AddedArticle 13 – paragraph 7 a (new): 7a. Digital euro users may have one or more online digital euro payment accounts, with the same or different payment service providers.

AddedArticle 13 – paragraph 8: 8. From the date of issuance of the digital euro, payment service providers shall make available to their clients, free of charge, accessible information about the specific features of digital euro payment services and the conditions of their distribution.

AddedArticle 14 – paragraph 1: 1. For the purpose of distributing the digital euro to natural persons referred to in Article 13(1)(a), credit institutions that provide payment services as referred to in points (1), (2) or (3) of Annex I to Directive (EU) 2015/2366 shall, upon request of their clients, provide those persons with all basic digital euro payment services as referred to in Annexes II and IIa to this Regulation.

AddedArticle 14 – paragraph 2: 2. For natural persons referred to in Article 13(1)(a) that do not hold a non-digital euro account, Chapter IV of Directive (EU) 2014/92 shall apply, with the exception of Articles 17 and 18, to the access to online digital euro account with basic services by consumers.

AddedArticle 14 – paragraph 3 – point a: deleted

AddedArticle 14 – paragraph 4: 4. Payment service providers referred to in paragraphs 1 to 3 shall provide digital inclusion support to their clients with disabilities, functional limitations or limited digital skills, and elderly persons. Without prejudice to paragraph 3, point (b), digital inclusion support shall comprise a dedicated assistance for onboarding to the digital euro payment services and using all basic digital euro services.

AddedArticle 14 – paragraph 5: 5. The anti-money laundering authority of the Union (‘AMLA’) established under Regulation (EU) 2024/1620 of the European Parliament and of the Council1a and the European Banking Authority shall jointly issue guidelines specifying the interaction between AML/CFT requirements and the provision of basic digital euro payment services with a particular focus on financial inclusion of vulnerable groups including asylum seekers or beneficiaries of international protection, individuals with no fixed address or third country nationals who are not granted a residence permit but whose expulsion is impossible for legal or factual reasons. Those guidelines shall reflect the intrinsic distinctive AML/CFT risk profiles of basic online and offline digital euro payment services. / 1a Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024 establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010 (OJ L, 2024/1620, 19.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1620/oj)

AddedArticle 15 – paragraph 1: 1. With a view to enabling natural and legal persons to access and use the digital euro and to contributing to the stability of the financial system, the use of the digital euro as a store of value shall be subject to holding limits that will be the same across all euro area Member States and respect the principle of proportionality.

AddedArticle 15 – paragraph 2: 2. With a view to ensuring an effective use of the digital euro as a legal tender means of payment, and to avoiding excessive charges for merchants subject to the obligation to accept the digital euro under Chapter II while providing appropriate and fair compensation for the relevant costs incurred by payment services providers for the mandatory provision of digital euro payment services, the level of charges or fees to be paid by natural persons or merchants to payment service providers, or between payment service providers, shall be subject to limits.

AddedArticle 16 – paragraph 1: 1. For the purpose of Article 15(1), legal persons shall not maintain any digital euro holdings. In the event of a temporary network disruption due to force majeure events, legal persons may temporarily maintain holdings in their offline digital euro device with no limits. As soon as the network disruption has come to an end, automatic defunding in accordance with Article 13(2c) shall be provided.

AddedArticle 16 – paragraph 2 – introductory part: 2. For the purpose of Article 15(1), the holdings of digital euro that natural persons may hold shall be limited.

AddedArticle 16 – paragraph 2 – point a: deleted

AddedArticle 16 – paragraph 2 – point b: deleted

AddedArticle 16 – paragraph 2 – point c: deleted

AddedArticle 16 – paragraph 3 – introductory part: 3. The European Central Bank shall, after consulting the European Systemic Risk Board, prepare a report on the impact of different theoretical holding limits on the financial stability of the euro area and its Member States. The European Central Bank shall submit the report to the Commission, the European Parliament and the Council within six months of having concluded the preparatory work for the issuance of the offline digital euro referred to in Article 4(2a). The report shall be accompanied by the methodology employed for the calculations and shall contain at least the following information:

AddedArticle 16 – paragraph 3 – point a (new): (a) an assessment of the impact of different theoretical holding limits on the financial stability and on the competitiveness and resilience of credit institutions and non-financial corporations in the euro area, giving special attention to the impact on funding, liquidity, profitability and lending provision by credit institutions;

AddedArticle 16 – paragraph 3 – point b (new): (b) any limitations in the methodology or the data used that shall limit their applicability, and specifically any correction factors needed to extrapolate the results on liquidity metrics when the data used include periods with extraordinary ample market liquidity and excess reserves.

AddedArticle 16 – paragraph 3 – subparagraph 2 (new): When assessing the impacts referred to in the first subparagraph, point (a), the European Central Bank shall assume, for every theoretical holding limit, a full take-up of the theoretical holding limits in a normalised overall market liquidity situation as compared with a situation in which the digital euro is not issued. The impacts shall be evaluated at the aggregate level of the Union and national financial systems as well as at the level of individual credit institutions in order to assess residual financial instability risks stemming from euro area-wide, country-specific or institution-specific risks. Information on the most affected institutions, the Member States they operate in and their business model shall be provided at the highest level of granularity compatible with keeping confidentiality of supervisory data.

AddedArticle 16 – paragraph 4: 4. No later than three months after the reception of the report of the European Central Bank referred to in paragraph 3 and prior to the adoption of the delegated act referred to in paragraph 5, the Commission shall prepare a report with a detailed explanation of the risk tolerance to residual financial stability risk. The report shall, in particular, establish the percentage of total banking assets at euro area and at Member State level that may be subject to stressed financial conditions for potential theoretical holding limits in the scenario of full take up by digital euro users.

AddedArticle 16 – paragraph 4 – subparagraph 2 (new): The Commission shall present the report to the European Parliament and to the Council no later than three months before the adoption of the delegated act referred to paragraph 5.

AddedArticle 16 – paragraph 5 – introductory part: 5. The Commission is empowered to adopt a delegated act to set up the initial holding limits. The delegated act shall be adopted no later than six months after receipt of the report of the European Central Bank referred to in paragraph 3. The initial holding limits shall comply with the following criteria in the scenario of full take up by digital euro users in normalised overall market liquidity situation:

AddedArticle 16 – paragraph 5 – subparagraph 1 – point a (new): (a) no individual credit institution in the euro area is expected to confront a retail sight deposits outflow greater than 5% compared to the situation without a digital euro;