ECB Official Defends Amazon’s Role in Testing a Digital Euro

Being independent in payments shouldn’t mean protectionism, central banker Jürgen Schaaf said.

AccessTimeIconSep 28, 2022 at 11:59 a.m. UTC
Updated May 11, 2023 at 5:09 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A European Union official defended the bloc's decision to give Amazon (AMZN) a prime role in testing a digital euro.

The U.S. retail giant was one of five companies selected by the European Central Bank to develop a user interface for a potential central bank digital currency (CBDC) earlier this month, ahead of a September 2023 decision over whether to actually issue a digital euro.

“The prototyping experiments for the front end are driven by technological considerations,” Jürgen Schaaf, an adviser to ECB senior management on payment issues, said Wednesday in a panel discussion in London that was hosted by the Association for Financial Markets in Europe. “The companies that have been chosen for that five were the most appropriate in terms of the needs that we have for technological tests and experiments.”

Amazon, which will look into the use of CBDC’s in e-commerce, is the only non-EU company included among the five selected. Others include payment companies Nexi and Worldline, Spain’s CaixaBank (CABK), and the European Payments Initiative, a consortium of euro-area banks.

The results of the prototypes won’t automatically feed into the subsequent experimental phase, Schaaf said, suggesting Amazon won’t continue to have favored access.

Ensuring Europe’s resilience and autonomy is one of the stated goals of the digital euro, in a payments market that is dominated by non-European companies like Visa and Mastercard. Schaaf cited the risks if financial sanctions imposed from abroad put the brakes on the EU economy by limiting transactions, but said he didn't want to see a "political" exclusion of U.S. companies.

“Our wish to strengthen our monetary autonomy with a digital euro does not mean that Europe would shut down all its gates for retailers from abroad,” Schaaf said. “There’s no protectionist intention behind that.”

The EU is one of a number of jurisdictions across the world contemplating a CBDC, and if agreed to, the digital euro could be issued in 2026.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jack Schickler

Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.