Central bank digital currency: a regulatory perspective on the future payment instrument in the European Union

Abstract

In recent years the economy has seen an expansion of various methods of payment, more and more digital possibilities are offered to customers in order to pay their bills at stores, restaurants or simply when they are shopping on Amazon at home. The digital world is taking over not just the single phases of the transaction, but also the means itself behind that said transaction. Digital currencies are, in fact, no longer an abstract concept or futuristic tool, they became a reality. For this reason central Authorities, such as the ECB, can no longer disregard the matter, but should develop their own digital payment instrument. With this paper we are going to address how the issuance of a central bank digital currency will affect the current EU regulation system and which changes should be made to the normative framework.