Changes from report parliamentary committee draft to plenary report

RemovedArticle 35 – paragraph 4: 4. Personal data processed for tasks referred to in paragraph 1 shall be supported by appropriate technical and organisational measures including state-of-the-art security and privacy-preserving measures. This shall include the clear segregation of personal data to ensure that the European Central Bank and the national central banks cannot directly or indirectly identify individual digital euro users or link them to specific transactions.

Added(ea) natural or legal persons residing or established in Member States whose currency is not the euro, or in third countries, where those natural or legal persons exercise their free movement rights in a Member State whose currency is the euro.

RemovedArticle 35 – paragraph 5: 5. The European Central Bank shall be considered the controller of personal data as regards to the purposes referred to in paragraphs 1 and 8 of this Article. When the European Central Bank carries out a task referred to in paragraphs 1 and 8 jointly with the national central banks, they shall be joint controllers for that task.

AddedThe European Central Bank may restrict the access to and use in time of the digital euro for the digital euro users referred to in points (b) and (c) of the first subparagraph of this paragraph subject to the conditions laid down in Article 16.▌

RemovedArticle 35 – paragraph 7: 7. Where the European Central Bank decides not to confer tasks referred to in Articles 27 and 32 upon providers of support services, the European Central Bank may process the types of personal data referred to in Annex VII subject to the requirements referred to in paragraph 4 of this Article.

AddedFor the purpose of point (a) of the first subparagraph, the term ‘residing’ shall include both Union citizens and third country nationals who benefit from residence rights pursuant to Union law or national law of a Member State.

RemovedArticle 35 – paragraph 8: 8. For purpose of supporting the task of payment service providers to enforce the limits in accordance to Article 16 and ensuring the emergency switching upon the request of the user in accordance with Article 31(2), the ECB may jointly with national central banks establish a single access point of digital euro user identifiers and the related digital euro holding limits as referred to in point (4) of Annex VI. The European Central Bank shall implement appropriate technical and organisational measures including state-of-the-art security and privacy-preserving measures to ensure that the identity of individual digital euro users cannot be inferred from the information accessed via the single access point by entities other than payment service providers whose customer or potential customer is the digital euro user.

Added2. ▌

RemovedArticle 36 – title: Processing personal data by providers of support services

Added2a. Without prejudice to Articles 16 and 37 of this Regulation, a payment service provider that provides account servicing payment services within the meaning of [PSD3/PSR] shall enable digital euro users who are natural persons, whether holding their non-digital euro payment account to which their digital euro payment account is linked with that same or with a different payment service provider, to manually or automatically fund or defund their digital euro payment accounts in any of the following ways:

RemovedArticle 36 – paragraph 1 – introductory part: 1. Where the European Central Bank decides to confer tasks referred to in Article 27 and 32 upon providers of support services, providers of support services shall provide payment-related services across payment service providers. In such a situation, payment service providers perform a task in the public interest, where they process personal data for the following purposes:

Added(a) from or to non-digital euro payment accounts, at any point in time;

RemovedArticle 36 – paragraph 2: 2. For the purposes referred to in paragraph 1, Annex VII lays down the types of personal data.

Added(b) from or to local storage devices, at any point in time;

RemovedArticle 36 – paragraph 3: 3. The Commission is empowered to adopt delegated acts in accordance with Article 38 to update the types of personal data listed in Annex VII.

Added(c) from or to euro banknotes and coins, whenever the payment service provider provides cash services.

RemovedArticle 36 – paragraph 4: 4. The processing of personal data for the purposes referred to in paragraph 1 shall only take place when appropriate technical and organisational measures including state-of-the-art security and privacy-preserving measures are implemented to ensure that the providers of support services cannot directly or indirectly identify individual digital euro users or link them to specific transactions.

AddedFor the purposes of the first subparagraph, point (c), cash funding and defunding functionalities in respect of digital euro payment accounts shall be provided by the payment service provider in the same manner as that provider’s provision of cash in respect of non-digital euro payment accounts.

RemovedArticle 36 – paragraph 5: 5. The providers of support services shall be considered to be the controllers of personal data as regards the purposes referred to in paragraph 1 of this Article. This paragraph is without prejudice to the European Central Bank and the national central banks appointing the operators of any payment-related services across payment service providers and auditing of the service performance level without processing any personal data.

Added2b. Without prejudice to Articles 16 and 37 of this Regulation, a payment service provider that provides account servicing payment services within the meaning of [PSD3/PSR] shall enable digital euro users who are legal persons or natural persons acting as a self-employed person in a commercial activity to automatically defund, at any point in time, their digital euro holdings to a non-digital euro payment account, whether held with the same payment service provider with which they hold their digital euro payment account or with a different one, designated by the digital euro user concerned.

RemovedArticle 37 – paragraph 2: 2. Transaction data shall not be obtained or retained by payment service providers or by the European Central Bank and the national central banks.

Added2c. Payment service providers shall provide all mandatory digital euro acquiring services set out in Annex IIa.

RemovedArticle 37 – paragraph 3: 3. Payment service providers shall obtain and retain data of funding and defunding for storing digital euros on payment instruments in accordance with Article 40 of Directive (EU) 2015/849 and national provisions transposing that Article. Payment service providers shall, upon request, make those data available to the Financial Intelligence Unit and other competent authorities as referred in Article 2(44) of Regulation 2024/1624.

AddedPayment service providers that decide to provide digital euro payment services to consumers or do so upon the request of their clients pursuant to Article 14(1) shall provide all basic digital euro payment services set out in Annex II.

RemovedArticle 37 – paragraph 4 – point b: (b) the identifier of the offline digital euro device;

AddedPayment service providers that decide to provide mandatory digital euro acquiring services to merchants or do so upon the request of their clients pursuant to Article 14(1a) shall provide all mandatory digital euro acquiring services set out in Annex IIa.

RemovedArticle 37 – paragraph 4 – point d: (d) the digital euro payment accounts or non digital euro payment accounts numbers used for funding and defunding.

Added▌

RemovedArticle 37 – paragraph 5: 5. The Commission is empowered to adopt delegated acts setting additional offline digital euro payment transaction limits and holding limits due to AML/CFT considerations in addition to those referred to in Article 16 derived from financial stability considerations. / The applicable holding limit shall be the lower of: (i) the limit established pursuant Article 16, or (ii) any AML/CFT-related limit adopted by the Commission in accordance with the first subparagraph

Added4. Payment service providers that provide account servicing payment services within the meaning of Directive (EU) 2015/2366 shall enable digital euro users:

RemovedArticle 37 – paragraph 6 – subparagraph 1 – introductory part: Transaction and holding limits shall take into account the need to prevent money laundering and terrorist financing while not unduly restricting the use of the offline digital euro as a means of payment. The Commission, when drawing up the delegated acts referred to in paragraph 5, shall take into account in particular the following:

Added(a) to have their 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;

RemovedArticle 37 – paragraph 6 – subparagraph 1 – point a: (a) an assessment of the money laundering and terrorist financing threats, vulnerabilities and risks of the offline digital euro when funding and defunding their payment instrument and its risk profile when used in physical proximity or through a digital communication link between the payer and the payee;

Added(b) to make an online digital euro payment transaction where the transaction amount exceeds their digital euro holdings.

RemovedArticle 37 – paragraph 6 – subparagraph 1 – point c: (c) the objective of ensuring the usability and acceptance of the offline digital euro as a legal tender instrument.

AddedFor the purpose of the first subparagraph, and upon prior approval by the digital euro users, payment service providers shall link each 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 digital euro payment account is held.

RemovedArticle 38 – title: Exercise of the delegation

AddedWhere, as provided for in the second subparagraph, a digital euro user holds its designated single payment account and any of its other digital euro payment accounts with different payment service providers, the service set out in the first subparagraph, point (b), shall only be provided to that user where a voluntary contractual arrangement exists between the payment service providers concerned.

RemovedArticle 38 – paragraph 2: 2. The power to adopt delegated acts referred to in Articles 3, 11, 16, 34, 35, 36, 37 and 38 shall be conferred on the Commission for a period of five years from the date of entry into force of this Regulation. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

AddedFor purposes other than those of the first subparagraph, points (a) and (b), automatic funding and defunding shall take place within the same or with a different payment service provider. Those services shall only be provided among different payment service providers where a voluntary contractual arrangement exists between the payment service providers concerned.

RemovedArticle 38 – paragraph 3: 3. The power to adopt the delegated acts referred to in Articles 3, 11, 16, 34, 35, 36, 37 and 38 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Added4a. When providing digital euro payment services to merchants subject to the obligation to accept the digital euro pursuant to Chapter III, payment service providers shall offer to those merchants, upon request, the possibility of initiating and executing refund transactions.

RemovedArticle 38 – paragraph 6: 6. A delegated act adopted pursuant to Articles 3, 11, 16, 34, 35, 36, 37 and 38 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months 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.

Added5. The digital euro distributed by payment service providers shall be convertible at par with scriptural money and electronic money denominated in euro.

RemovedArticle 39: deleted / (deleted) / (deleted) / (deleted)

Added6. For the purpose of digital euro payment services, digital euro users shall only enter into a contractual relationship only with PSPs. Digital euro users shall not have any contractual relationship with the European Central Bank or the national central banks.

RemovedArticle 40 – paragraph 1 – subparagraph 2 – introductory part: For 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:

Added7. Digital euro users may have one or more digital euro payment accounts, with the same or different payment service providers.

RemovedArticle 40 – paragraph 1 – subparagraph 2 – point -a (new): (-a) the progress made in the Union payments landscape towards the creation of a pan-European sovereign retail payment instrument as referred to Article 3;

Added8. 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.

RemovedArticle 40 – paragraph 1 – subparagraph 2 – point d a (new): (da) data on fraud, counterfeiting and double spending and its comparison with comparable means of payment or cash, where appropriate;

Added8a. The European Central Bank may issue technical standards and operational guidelines to promote efficiency, interoperability, and cost minimisation in the provision of digital euro payment services. Payment service providers shall cooperate with the European Central Bank in:

RemovedArticle 40 – paragraph 1 – subparagraph 2 – point d b (new): (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 improvement of the Rulebook to improve the functioning of the digital euro.

Added(a) sharing anonymised cost and operational data to establish efficiency benchmarks;

RemovedArticle 40 – paragraph 2: deleted / (deleted) / (deleted)

Added(b) adopting common standards and interfaces that reduce integration and operational costs;

RemovedArticle 40 – paragraph 3 – introductory part: 3. 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(c) identifying and implementing best practices for cost-effective service delivery;

RemovedArticle 40 – paragraph 3 – point -a (new): (-a) the financial stability;

Added(d) exploring shared infrastructure solutions, where appropriate, to minimise duplicative costs.