Changes from report parliamentary committee draft to plenary report

Added4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

Added5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

Added6. A delegated act adopted pursuant to Articles 14, 16a, 34, 35, 36 and 37 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.

Added1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

Added2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Added1. The accountability arrangements of Article 15▌(3) of the Statute of the ESCB and of the European Central Bank shall apply to the issuance and use of the digital euro.

AddedFor that purpose, the European Central Bank shall report on the digital euro development and its effective use. The report shall cover the contribution of the European Central Bank in the implementation of the provisions of this Regulation, including on the following elements:

Added(-a) the effects of the introduction of the digital euro on the innovation, technological development and competition in the Union’s payments market, including an analysis on the progress made towards the creation of a pan-European retail payment solution;

Added(a) ▌

Added(aa) the costs incurred by the European Central Bank and the national central banks for the establishment and, the operation and management of the digital euro payment infrastructure, including the operation of the settlement infrastructure;

Added(b) ▌

Added(c) the development of central bank digital currencies other than the digital euro in Member States whose currency is not the euro and in relevant third countries, and the relevance of these developments for the euro area;

Added(d) market trends in payments and relevance of such trends for innovative use cases;

Added(da) data on fraud, counterfeiting and double spending and its comparison with comparable means of payment or cash, where appropriate;

Added(db) the level of disputes among payment service providers relating to the application of its Rulebook settled by the European Central Bank and a summary of the changes needed to the Rulebook to improve the functioning of the digital euro;

Added(dc) the development of existing and emergence of new technologies which might be of relevance for the digital euro infrastructure;

Added(dd) the operational resilience of the digital euro infrastructure, including cybersecurity incidents, fraud patterns and contingency measures, while avoiding the disclosure of sensitive information or operational details which could compromise security.

Added1a. In addition to the reporting pursuant to paragraph 1, the European Central bank shall publish the following reports provided for in this Regulation:

Added(a) the report summarising the results of the pilot testing, pursuant to Article 4a(4);

Added(b) the technical report on the specific quantitative limits on digital euro holdings of natural persons and on any other instruments developed to limit the use of the digital euro as a store of value, pursuant to Article 16 (2);

Added(c) the report assessing the use of the digital euro in fraudulent or illicit transactions, as well as the effectiveness of safeguards and mitigation measures applied, pursuant to Article 32 (4b);

Added▌

Added3. One year after the first issuance of the digital euro and every three years thereafter, the Commission shall submit to the European Parliament and to the Council a report analysing the impact of the limits referred to in Article 16 on:

Added(-a) financial stability;

Added(a) the role of financial intermediaries in the financing of the economy;

Added(b) liquidity requirements laid down in Regulation (EU) 575/2013 ▌;

Added(c) the effective usability of the digital euro within this framework.

Added3 a. By two years after the first issuance of the digital euro and every three years thereafter, the Commission shall present to the European Parliament and to the Council a report on the general application of this Regulation, which shall incorporate a specific analysis on the following:

Added(a) whether there is sufficient and effective access to and acceptance of the digital euro in the euro area and on the evolution of the business model of credit institutions;

Added(b) the effective use of the digital euro;

Added(c) an analysis on distribution of the digital euro by payment service providers pursuant to Article 14(5a);

AddedWhen preparing the reports referred to in the first subparagraph, the Commission shall take into account the reports by European Central Bank referred in this Article and any opinion and views expressed by the European Central Bank.

Added3 b. Pursuant to Article 17(3), the Commission shall publish periodically, with an explanatory report, the aggregate amounts resulting from the monitoring of the information collected on the fees or charges requested for international and domestic debit card schemes that are usable at the point of sale and in e-commerce as well as inter-payment service provider fees and the merchant service charges levied on digital euro transactions.

Added3 c. Pursuant to Article 17a(1), the Commission, after consulting the European Central Bank, shall submit a report on the compensation model referred to in Article 17 and a cost-based compensation model referred to in Article17a(3).

Added3d. By three years from the first issuance of the digital euro, the Commission shall present to the European Parliament and to the Council a report on the possibility of an offline digital euro payment transaction taking place even when the two local storage devices of the payer and the payee are not in physical proximity. The report shall assess, in particular:

Added(a) the technical feasibility of such a solution;

Added(b) the adequate and satisfactory AML/CFT safeguards to mitigate the increased risks associated with such solution.

AddedThe European Central Bank shall provide the Commission with all technical support required in relation to point (a) of the first subparagraph.

AddedAMLA shall provide the Commission with all technical support required in relation to the first subparagraph, point (b).

Added3e. By three years from the first issuance of the digital euro, the Commission shall present to the European Parliament and to the Council a report on the possibility of applying a special anti-money laundering regime to low-value online digital euro payment transactions providing similar privacy features to the offline digital euro payment functionality, taking into account the distinct risk profile of that type of transaction.

AddedAMLA shall provide the Commission with all technical support required in relation to the first subparagraph.

Added4. Member States shall, one year after the first issuance of the digital euro and every two years thereafter, provide the Commission with information on all of the following:

Added(a) the penalties applied pursuant to Article 6(1);

Added(b) the number of digital euro accounts which have been opened and offline local storage devices distributed;

Added(c) the number of payment service providers that provide digital euro basic services to natural persons as referred to in Articles 14(2) and 14(3);

Added(d) the number of digital euro payment accounts that have been opened by payment service providers referred to in Article 14(2) and▌(3);

Added(e) the proportion of applications that have been refused by payment service providers referred to in Article 14(2) ▌and (3).

Added1. ▌

Added2. By one year from the date of application of this Regulation, the Commission shall present to the European Parliament and to the Council a report on the developments of retail central bank digital currencies in Member States whose currency is not the euro and the impact of this Regulation on the internal market, accompanied where appropriate by proposals for amending legislative acts governing the use of retail central bank digital currencies across the Union.

Added3. ▌

Added4. The reports referred to in Article 40(3d) and (3e) shall, where appropriate, be accompanied by a legislative proposal to amend this Regulation.

AddedThis Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

AddedThis Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties.

AddedDigital euro payment services consist of:

Added(a) enabling digital euro users to access and use the digital euro, without prejudice to possible limitations set out in ▌ Article 16;

Added(b) enabling digital euro users to initiate and receive digital euro payment transactions and providing digital euro users with digital euro payment instruments;

Added(c) managing digital euro users’ digital euro payment accounts;

Added(d) enabling funding and defunding functionalities in accordance with Article 13; and

Added(e) providing additional digital euro payment services on top of basic digital euro ▌ services pursuant to Annex II.

AddedBasic digital euro payment services for natural persons shall consist of: