Expert: Just as you have an IBAN for your bank account today, you will soon have a DEAN for the digital euro

The European Central Bank (ECB) is developing a digital euro that will allow eurozone citizens to use a secure and fully European form of money – a digital equivalent of cash. The new currency will not replace existing funds, but will complement them, providing more independence and choice in payments.

The project is currently in the technical preparation phase, and its full operational readiness is expected by 2029. Pilot tests could begin as early as 2027, Alessandro Giovannini, advisor to the director of the Digital Euro project at the ECB, announced during a meeting with journalists in Frankfurt.

„"We have not yet made a decision to issue the digital euro. This is a preparatory stage that will ensure that when the time comes, we will be fully ready," Giovannini specified, quoted by BTA.

The system will be based on the Digital Euro Access Number (DEAN) – a unique identifier for each user that will function independently of the bank servicing the account. „Just as today you have an IBAN for your bank account, tomorrow you will have a DEAN for access to the digital euro,“ the expert explained.

This mechanism will guarantee access to funds even in the event of a cyberattack or the collapse of a specific bank, through an automatic transfer function to another institution without loss of funds.

The discussed limit for digital wallets is €3,000 – the amount that can be held at one time, not a transaction cap. The system will offer „automatic reloading“, where when you spend part of the amount, the wallet will be filled to the maximum.

„"The idea is not for people to transfer all their savings into digital euros, but to have enough for everyday payments, just as they keep a limited amount in cash today," Giovannini added.

For businesses, there will be an automatic settlement mechanism - digital payments will be transferred immediately to regular bank accounts to avoid the concentration of large volumes of funds.

The digital euro will offer two modes for users:

Online wallet – linked to the bank account, for daily payments with automatic recharge.

Offline wallet – a "preloaded" amount on the mobile device, usable without the internet, similar to cash.

In offline payments, losing the phone means losing the amount, just like losing banknotes.

The ECB assures that it will not have access to users' personal or transactional data. The Digital Euro Service Platform (DESP) infrastructure will have three independent centers in the eurozone to ensure continuous operation even in the event of a local outage or cyberattack.

„"We will have the highest standards of security and privacy. The digital euro will not be a tool for surveillance, but for trust," Giovannini stressed.

European payments sovereignty

The system will be based on the existing TIPS instant payments infrastructure, which allows transactions to be made within seconds. The digital euro is intended to complement current solutions, ensuring European sovereignty in digital payments.

„"Even if you never use the digital euro, its existence alone will give you more security and choice. Private operators will have to offer better services to be competitive," the expert concluded.

The ECB is already working with the European Commission and national central banks to prepare the legal framework that will support the introduction of the new currency.
Source: https://www.plovdiv24.bg/