163 Amendments of Henrike HAHN related to 2023/0212(COD)
Amendment 126 #
Proposal for a regulation
Recital 4
Recital 4
(4) To address the need of a rapidly digitalising economy, the digital euro should support a variety of use cases of retail payments. Those use case include person to person, person to business, person to government, business to person, business to business, business to government, government to person, government to business, and government to government payments. In addition, the digital euro should also be able to fulfil future payments needs, and in particular machine to machine payment in the context of Industry 4.0 and payments in the decentralised internet (web3). TIn the future, the digital euro shwould not caterbe relevant also for payments between financial intermediaries, payment service providers and other market participants (that is to say wholesale payments), for which settlement systems in central bank money exist and where the use of different technologies is being further investigated by the Eurosystem. By offering a wide variety of uses cases, including online and offline payment options across Europe, a digital euro could be beneficial for both consumers and businesses. Intermediaries could be given the opportunity to offer innovative services based on the digital euro, and it could facilitate the rapid uptake of payment solutions in the euro area. In this sense, the digital euro could be a way to foster innovation, improve payment’s efficiency and support EU’s competitiveness.
Amendment 127 #
Proposal for a regulation
Recital 4
Recital 4
(4) To address the need of a rapidly digitalising economy, the digital euro should support a variety of use cases of retail payments. Those use case include person to person, person to business, person to government, business to person, business to business, business to government, government to person, government to business, and government to government payments. In addition, the digital euro should also be able to fulfil future payments needs, and in particular machine to machine payment in the context of Industry 4.0 and payments in the decentralised internet (web3). The digital euro should notis Regulation is not intended to cater for payments between financial intermediaries, payment service providers and other market participants (that is to say wholesale payments), for which settlement systems in central bank money exist and where the use of different technologies is being further investigated by the Eurosystem. The European Central Bank might however work towards integration of the technologies used for the retail digital euro and a future wholesale digital euro.
Amendment 130 #
Proposal for a regulation
Recital 5
Recital 5
(5) In a context where cash alone cannot answer the needs of a digitalised economy, it is essential to support financial inclusion by ensuring universal, affordablfree of charge and easy access to the digital euro to individuals in the euro area, as well as its wide acceptance in payments. In this respect, Member States should ensure sufficient and effective access to public entities, in all their different regions, including urban and non-urban areas. Member States should determine the number and geographical distribution of entities on the basis of common indicators. Financial exclusion in the digitalised economy mayis already a reality and might further increase as private digital means of payments maydo not always specifically cater for vulnerable groups of the society or may not be suitable in some rural or remote areas without a (stable) communication network. According to the World Bank and the Bank for International Settlements, “efficient, accessible and safe retail payment systems and services are critical for greater financial inclusion”.24 That finding was further substantiated by the study on new Digital Payment Methods commissioned by the European Central Bank, which concluded that for the unbanked/underbanked/offline population, the most important features of a new payment method are easiness of use, not requiring technological skills, and to be secure and free of charge.25 A digital euro would offer a public alternative to private digital means of payments and support financial inclusion as it would be designed along these objectives, thus catering for free access, easiness of use and wide accessibility and acceptance. Member States should ensure a high level of quality of the support and advice provided and a service which is targeted to the needs of vulnerable consumers. Member States should assess the quality of advice on the basis of common indicators. __________________ 24 https://documents1.worldbank.org/curated/ en/806481470154477031/pdf/Payment- Aspects-of-Financial-Inclusion.pdf 25 Study on New Digital Payment Methods (europa.eu), March 2022. According to the World Bank, financial inclusion means that individuals have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance”.
Amendment 133 #
Proposal for a regulation
Recital 5
Recital 5
(5) In a context where cash alone cannot answer the needs of a digitalised economy, it is essential to support financial inclusion by ensuring universal, affordable and easy access to the digital euro to individuals in the euro area, as well as its wide acceptance in payments. Financial exclusion in the digitalised economy may increase as private digital means of payments may not specifically cater for vulnerable groups of the society or may not be suitable in some rural or remote areas without a (stable) communication network. According to the World Bank and the Bank for International Settlements, “efficient, accessible and safe retail payment systems and services are critical for greater financial inclusion”.24 That finding was further substantiated by the study on new Digital Payment Methods commissioned by the European Central Bank, which concluded that for the unbanked/underbanked/offline population, the most important features of a new payment method are easiness of use, not requiring technological skills, and to be secure and free of charge.25 A digital euro would offer a public alternative to private digital means of payments and support financial inclusion as it would be designed along these objectives, thus catering for free access, easiness of use and wide accessibility and acceptance. Member States should therefore ensure that the digital euro is made available through designated public entities, although payment service providers should also be able to distribute the digital euro. __________________ 24 https://documents1.worldbank.org/curated/ en/806481470154477031/pdf/Payment- Aspects-of-Financial-Inclusion.pdf 25 Study on New Digital Payment Methods (europa.eu), March 2022. According to the World Bank, financial inclusion means that individuals have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance”.
Amendment 137 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) Large digital companies are developing rapidly in the payments sector. Two thirds of EU card payment transactions are run by non-EU companies today, and their market share is likely to increase in the coming years, highlighting an increased risk of market domination and dependence on foreign payment technologies which could have undesired implications for the European Union‘s strategic autonomy.
Amendment 138 #
Proposal for a regulation
Recital 7
Recital 7
(7) Future developments in digital payments may affect the role of the euro in retail payment markets both in the European Union and internationally. Many central banks around the world are currently exploring the issuance of central bank digital currencies (‘CBDCs’) and some countries have already issued a CBDC. In addition, so-called third country stablecoins not denominated in euro, could, if widely used for payments, displace euro denominated payments in the Union’s economy by satisfying demand for programmable payments (which are referred as conditional payments in the context of this Regulation), including in e- commerce, capital markets or industry 4.0. Furthermore, some large companies have announced or investigated the possibility to launch private tokenized money. A digital euro would therefore be important to maintain the role of the europublic money in the digital age.
Amendment 145 #
Proposal for a regulation
Recital 9
Recital 9
(9) Like euro banknotes and coins, the digital euro should be a direct liability of the European Central Bank or of the national central banks of the Member States whose currency is the euro towards digital euro users. The digital euro should be issued for an amount equal to the face value of the corresponding liability on the consolidated balance sheet of the European Central Bank and the national central banks of the Member States whose currency is the euro, in particular by converting payment service providers’ central bank reserves into digital euro holdings, to satisfy demand from digital euro users. To hold and use digital euros, digital euro users should only need to establish a contractual relationship withchoose a distributor for the digital euro to open digital euro payment accounts, which can be a payment services providers distributing the digital euro to open digital euro payment account or a public entity. Moreover, Member States should ensure full access to digital euro payment services through a public distributor, which might be a national central bank, and which should have the explicit mandate to promote inclusiveness. No account or other contractual relationship would be established between the digital euro user and the European Central Bank or the national central banks. Payment service provide. Distributors should manage the digital euro accounts of digital euro users on their behalf and provide them with digital euro payment services. Since payment service providersIn case of private distributors, since they are not a party to the direct liability held by digital euro users towards the European Central Bank and the national central banks of the Member States whose currency is the euro, and are acting on behalf of digital euro users, the insolvency of payment service providers would not affect digital euro users.
Amendment 148 #
Proposal for a regulation
Recital 9
Recital 9
(9) Like euro banknotes and coins, the digital euro should be a direct liability of the European Central Bank or of the national central banks of the Member States whose currency is the euro towards digital euro users. The digital euro should be issued for an amount equal to the face value of the corresponding liability on the consolidated balance sheet of the European Central Bank and the national central banks of the Member States whose currency is the euro, in particular by converting payment service providers’ central bank reserves into digital euro holdings, to satisfy demand from digital euro users. To hold and use digital euros, digital euro users should only need to establish a contractual relationship with payment service providers distributing the digital euro to open digital euro payment accounts. No account or other contractual relationship would be established between the digital euro user and the European Central Bank or the national central banks, without prejudice to the possibility of appointing the national central bank as the public entity of a Member State distributing the digital euro. Payment service providers should manage the digital euro accounts of digital euro users on their behalf and provide them with digital euro payment services. Since payment service providers are not a party to the direct liability held by digital euro users towards the European Central Bank and the national central banks of the Member States whose currency is the euro, and are acting on behalf of digital euro users, the insolvency of payment service providers would not affect digital euro users. Digital euro users would remain the only owners of, or holders of property interests in, the rights represented by digital euros, even though digital euro users would only be able to access and use their holdings through their respective payment service providers. Under no circumstances would the payment service provider become the owner of, or have any property interest in, the rights represented by digital euros upon the opening of the accounts for digital euro users.
Amendment 150 #
Proposal for a regulation
Recital 10
Recital 10
(10) The digital euro should be governed by the provisions of this Regulation. They may be supplemented by the delegated acts that the Commission is empowered to adopt pursuant to Articles 11, 34, 35, 36 and 38, and by the implementing acts that the Commission is empowered to adopt pursuant to Article 3714, 17, 33, 34, 35, 36, 37 and 38. In addition, within the framework of this Regulation and its delegated acts, the European Central Bank may adopt detailed measures, rules and standards pursuant to its own competences. Where such measures, rules and standards have an impact on the protection of individual’s rights and freedoms with regard to the processing of personal data, the European Central Bank should consult the European Data Protection Supervisor. To ensure legal certainty, the Regulation also clarifies that the digital euro is subject to Directive (EU) 2015/849 of the European Parliament and of the Council, of 20 May 2015, on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and to Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds, without prejudice to the adjusted anti-money laundering and counter terrorist financing framework laid down in this regulation for offline digital euro payment transactions. Digital euro payment transactions and the related payment services are also subject to Directive (EU) 2015/2366 of the European Parliament and of the Council, of 25 November 2015, on payment services in the internal market, as amended by Directive [please insert reference - proposal for a Directive of the European Parliament and of the Council on payment services and electronic money services in the internal market amending Directive 98/26/EC and repealing Directives 2015/2366/EU and 2009/110/EC - COM(2023) 366 final] which has provided that ‘funds’ include central bank money issued for retail use (i.e. banknotes, coins and central bank digital currencies), and to Regulation (EU) 2021/1230 on cross border payments.
Amendment 153 #
Proposal for a regulation
Recital 13
Recital 13
(13) Member States, their relevant authorities and payment service providers should deploy information and educational measures to ensure the necessary level of awareness and knowledge of the different aspects of the digital euro, including the benefits of its use as well as its characteristics relating to the protection and exercise of fundamental rights and freedoms.
Amendment 154 #
Proposal for a regulation
Recital 16
Recital 16
(16) The digital euro, as a central bank digital currency with the status of legal tender denominated in euro issued by the European Central Bank and national central banks of the Member States whose currency is the euro, as part of the Eurosystem, should be widely accessible, usable and accepted as a means of payment. Granting legal tender status to the digital euro should support its usability in payments across the euro area and thus also support the efforts to ensure the continued availability and accessibility of central bank money in its role of monetary anchor, as cash alone cannot address the needs of a rapidly digitalising economy. In addition, the mandatory acceptance of payments in digital euro as one of the main conditions of the legal tender status ensures that people and businesses benefit from a wide acceptance and have a real choice to pay with central bank money in a digital way and in a uniform manner throughout the euro area.
Amendment 157 #
Proposal for a regulation
Recital 18
Recital 18
(18) Since the digital euro requires the capacity to accept digital means of payment, imposing an obligation of mandatory acceptance of payments in digital euro on all payees could be disproportionate. To this end, exceptions to the mandatory acceptance of payments in digital euro should be provided for natural persons acting in the course of a purely personal or household activity. Exceptions to mandatory acceptance should also be provided for microenterprises, which are particularly important in the euro area for the development of entrepreneurship job creation and innovation, playing a vital role in shaping the economy. Union policies and actions should reduce regulatory burdens for enterprises of this size. Exceptions to mandatory acceptance should also be provided for non-profit legal entities which promote the public interest and serve the public good performing a variety of goals of societal interest, including equity, education, health, environmental protection and human rights. For microenterprises and non-profit legal entities, the acquisition of the required infrastructure and the acceptance costs would be disproportionate. They should therefore be exempted from the obligation to accept payments in digital euro. In such cases, other means for the settlement of monetary debts should remain available. Nevertheless, microenterprises and non-profit legal entities that accept comparable digital means of payment from payers should be subject to the mandatory acceptance of payments in digital euro. Comparable digital means of payment should include debit card payment or instant payment or other future technological solutions used at the point of interaction, but should exclude credit transfer and direct debit that are not initiated at the point of interaction. Microenterprises and non-profit legal entities that do not accept comparable digital means of payment or credit cards from their payers in settlement of a debt (e.g. they only accept euro banknotes and coins), but may use digital payments in settlement of a debt to their payees (e.g. they pay with credit transfers), should not be subject to the mandatory acceptance of payments in digital euro. Finally, a payee may also refuse a payment in digital euro if the refusal is made in good faith and if the payee justifies the refusal on legitimate and temporary grounds, proportionate to concrete circumstances beyond its control, leading to an impossibility to accept payments in digital euro at the relevant time of the transaction, such as a power outage in the case of online digital euro payment transactions, or a defective device in the case of offline or online digital euro payment transactions.
Amendment 161 #
Proposal for a regulation
Recital 19
Recital 19
(19) In order to ensure that additional exceptions to the mandatory acceptance of the digital euro may be introduced at a later stage if they are required, for example due to technical specificities that may appear in the future, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the introduction of additional exceptions of a monetary law nature to the obligation to accept digital euro payment transactions, which would apply in a harmonised way across the euro area, taking into account any proposals from Member States to this end. The Commission may only adopt such exceptions if they are necessary, justified on grounds of general interest, proportionate, and preserve the effectiveness of the legal tender status of the digital euro, and if other public means of payments are available. The power of the Commission to adopt delegated acts for the introduction of additional exceptions to the obligation to accept digital euro payment transactions should be without prejudice to the possibility for Member States, pursuant to their own powers in areas of shared competence, to adopt national legislation introducing exceptions to the mandatory acceptance deriving from the legal tender status in accordance with the conditions laid down by the Court of Justice of the European Union in its judgment in Joined Cases C-422/19 and C-423/19.
Amendment 162 #
Proposal for a regulation
Recital 25
Recital 25
(25) For the purpose of properly enforcing any holding limits on the use of the digital euro decided upon by the European Central Bank, when on-boarding digital euro users, or during ex-post checks where appropriate, payment service providers in charge of distributing the digital euro should verify whether their prospective or existing customer already has digital euro payment accounts. The European Central Bank may support payment service providers in performing the task of enforcing any holding limits, including by establishing alone or jointly with national central banks a single access point of digital euro user identifiers and the related digital eurodecentralised system based on secure multi-party computation to enforce holding limits. The European Central Bank should 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 linked with the information in the single access pointdecentralised system based on secure multi-party computation by entities other than payment service providers whose client or potential customer is the digital euro user. The European Central Bank should be controller to the extent that these activities require processing of personal data. When the European Central Bank establishes the single access pointdecentralised system based on secure multi-party computation together with the national central banks, they should be joint controllers.
Amendment 165 #
Proposal for a regulation
Recital 26
Recital 26
(26) The digital euro represents a public digital alternative to private digital money. Therefore, all users in the Union should have access to the digital euro through public intermediaries, without having to make use of a private intermediary. However, to support universal access to the digital euro by the general public in the euro area, and to foster innovation and a high level of competition in the retail payment market, all the relevant intermediaries should be able to distribute the digital euro. All account servicing payment service providers under Directive 2015/2366, including credit institutions, electronic money institutions, payment institutions, post office giro institutions which are entitled under national law to provide payment services, the European Central Bank and national central banks of Member States whose currency is the euro, as part of the Eurosystem, when not acting in their capacity as monetary authority or other public authorities, and Member States or their regional or local authorities when not acting in their capacity as public authorities should be able to provide digital euro payment accounts and the related digital euro payment services, regardless of their location in the European Economic Area. Crypto asset services providers regulated under Regulation 2023/1114 of the European Parliament and of the Council29 that are account servicing payment service providers under Directive 2015/2366 should also be allowed to distribute the digital euro. In accordance with Directive 2015/2366, account servicing payment service providers should be obliged to provide access to data on payment accounts to payment initiation and account information service providers based on Application Programming Interfaces (APIs), to allow them to develop and provide innovative additional services. __________________ 29 Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937, OJ L150, 9.6.2023, p. 40
Amendment 169 #
Proposal for a regulation
Recital 29
Recital 29
(29) To ensure a wide usage of the digital euro, including for people who do not have a non-digital euro payment account, do not wish to open a digital euro payment account at a credit institution or at another payment service providers that may distribute the digital euro, or persons with disabilities, functional limitations or limited digital skills, and elderly persons, it is essential that public entities, including local or regional authorities, or postal offices, distribute the digital euro ensuring full and none-discriminatory access. For that purpose, Member States should designate entities that should carry out that task within their territory. Such entities, as payment services providers under Directive (EU) 2015/2366, should comply with the provisions of this Regulation, including Directive (EU) 2015/2366 and Directive (EU) 2015/849.
Amendment 170 #
Proposal for a regulation
Recital 30
Recital 30
(30) To enable a wide usage of the digital euro and keep pace with innovation in digital payments, digital euro payment services should include basic and additional digital euro payment services. Basic digital euro payment services are payment, account or support services that are considered essential for the use of the digital euro by natural persons. If only one payment instrument is provided, it shall be a payment card. This includes inter alia the provision of at least one payment instrument to natural persons. Only account servicing payment service providers under Directive 2015/2366 should provide the entire set of basic digital euro services. In addition to these basic digital euro payment services, account servicing payment service providers and other payment service providers under Directive 2015/2366 may develop and provide additional digital euro payment services. Additional digital euro payment services include for instance conditional digital euro payment transactions like pay-per-use or payment initiation services. The digital euro infrastructure should facilitate the deployment of such optional services. To ensure transparency of charges applying to optional and value-added services, the relevant articles of the Payment Account Directive should apply.
Amendment 177 #
Proposal for a regulation
Recital 32
Recital 32
(32) An unrestricted use of gradual introduction of the digital euro as a store of value could endangercontribute to financial stability in the euro area, w. With adverse effects on credit provision to the economy by credit institutions. This may require that the European C view to maintaining an equilibrium between bank deposits and central Bbank, with a view to ensuring the stability of the financial system, and money, the European Central Bank, in line with the principle of proportionality, might introduce temporary limits on the digital euro’s use as a store of value while guaranteeing the usability and acceptance of the digital euro as a legal tender instrument including without using the waterfall and reverse waterfall functionalities. The policy tools that could be used for this purpose include, but would not be restricted to, quantitative limits to individual digital euro holdings and limits to conversion of other categories of funds to digital euro in a specified timeframe. When deciding on the parameters, duration, and use of thesuch policy instruments referred to in paragraph 1, the European Central Bank should respect the principle of an open market economy with free competition, in accordance with Article 127(1) TFEUtake into account that any limit on digital euro holdings for each digital euro user implies lower privacy and a degree of personal data processing.
Amendment 182 #
Proposal for a regulation
Recital 33
Recital 33
(33) Limits should not be used to substitute for early intervention or other supervisory measures. Neither should such limits be imposed to address situations of individual credit institutions which competent resolution authorities or other relevant authorities would normally deal with by using tools and powers at their disposal, including suspensions of payment, moratoria, measures available under Directive 2013/36/EU, Directive 2014/59/EU or Regulation (EU) No 806/2014, or other similar measures which are aimed at restoring the viability, resolving the institution concerned or otherwise remedying the situation of financial distress. Additional limits of any sorts other than those laid down by ECB, should also not be imposed by payment service providers, even if they apply transaction or withdrawal limits on the regular bank accounts they offer.
Amendment 183 #
Proposal for a regulation
Recital 34
Recital 34
(34) Digital euro users should have the choice to use the digital euro either online or offline, or both, subject to the limits set respectively by the European Central Bank and by a Commission implementingdelegated act. The payment service providers should register and de-register the local storage devices for offline digital euro payment transactions of their customers. The payment service providers should only store the identifier of the local storage device used for offline digital euro for the duration of facilitating the provision of offline digital euro to their customers. The payment service providers should implement appropriate technical and organisational measures including state-of- the-art security and privacy- preserving measures to ensure that the identifier of the device of individual digital euro users cannot be used for other purposes other than for the purpose of the provision of offline digital euro.
Amendment 184 #
Proposal for a regulation
Recital 36
Recital 36
(36) The digital euro should allow for a smooth payment experience. Any instruments that the European Central Bank might employ to limit the digital euro’s store of value function should take this objective into account. Automated mechanisms that link a digital euro payment account with a non-digital euro payment account should allow for an uninhibited payment functionality of the digital euro, by ensuring that transactions are successfully executed in the presence of individual digital euro holding limits that may become binding on the payer’s or payee’s side. In particular, digital euro users should be able to initiate a digital euro payment transaction even though the amount of their digital euro holdings is inferior to the amount of the transaction, by automatically mobilising funds from a non- digital euro payment account to complement the transaction amount (‘reverse waterfall functionality’). Conversely, digital euro users should be able to receive digital euro payment transactions even though the amount of the transaction exceeds the limit set on their digital euro holdings, by automatically transferring funds in excess of the limit to a non-digital euro payment account (‘waterfall functionality’). Such payment functionalities should be expressly authorized by digital euro users. Where digital euro payment account held by one payment service provider is linked with non-digital euro payment account held by another payment service provider, they should enter into an arrangement specifying their respective roles and responsibilities under data protection rules, as well as agree on the security measures necessary to ensure secure transmission of personal data between the two payment service providers. Digital euro users should be able to decide not to link their digital euro payment account to a non- digital euro payment account.
Amendment 186 #
Proposal for a regulation
Recital 37
Recital 37
(37) While instruments employed by the European Central Bank to limit an excessive use of the digital euro as a store of value aim at safeguarding financial stability and financial intermediation, they may nonetheless impact on and interact with the European Central Bank’s monetary policy stance. Such instruments would therefore need to be applied uniformly across the euro area in order to ensure the use of the digital euro as a single currency and the singleness of the monetary policy. Furthermore, a uniform application would be necessary to ensure a level playing field for payment service providers in the European single market or avoid an overly complex enforcement of any instrument through payment service providers on the basis of digital euro users’ residency. Within the framework of this Regulation, the digital euro should not bear interest for the purposes of primarily using the digital euro as a means of payment while limiting its use as a store of value, unless the ECB decides otherwise. Grounds for that decision might relate to improving the competitive position of the digital euro in comparison with other CBDCs or in comparison with credit institutions. The decision to remunerate the digital euro should be guided by the framework set out in this regulation.
Amendment 187 #
Proposal for a regulation
Recital 37
Recital 37
(37) While instruments employed by the European Central Bank to temporarily limit an excessive use of the digital euro as a store of value aim at safeguarding financial stability and financial intermediationmaintaining an equilibrium between bank deposits and central bank money, they may nonetheless impact on and interact with the European Central Bank’s monetary policy stance. Such instruments would therefore need to be applied uniformly across the euro area in order to ensure the use of the digital euro as a single currency and the singleness of the monetary policy. Furthermore, a uniform application would be necessary to ensure a level playing field for payment service providers in the European single market or avoid an overly complex enforcement of any instrument through payment service providers on the basis of digital euro users’ residency. Within the framework of this Regulation, the digital euro should not bear interest for the purposes of primarily using the digital euro as a means of payment while limiting its use as a store of value.
Amendment 195 #
Proposal for a regulation
Recital 43
Recital 43
(43) A maximum fee or charge should allow for free competition between intermediaries below that level. Fees or charges should not exceed the relevant costs incurred by payment service providers for the provision of digital euro payment services in relation to digital euro payment transactions, nor should such fees or charges exceed those requested for comparable digital means of payment. To ensure that fees and charges are uniform across the euro area and proportionate, the European Central Bank should regularly monitor their level and, on this basis, publish the corresponding amounts together with an explanatory report. A maximum fee or charge should allow for fre and transmit this information to the cCompetition between intermediaries below that level. Fees or charges should not exceed the relevant costs incurred by payment service providers for the provision of digital euro payment services imission. On this basis, the Commission should adopt, by means of delegated acts, the caps that are to apply. When prelation to digital euro payment transactions, which are objective elements, and may include a reasonable margin of profitparing the delegated acts, the Commission should consult the European Central Bank. For that purpose, the European Central Bank should use an estimate of the representative average cost and charges incurred by payment service providers across the euro area and should therefore. In order to carry out the technical work needed to transmit the necessary data to the Commission, the European Central Bank should be in a position to collect relevant data from payment service providers. The relevant costs for providing digital euro payment services in relation to digital euro payment transactions should be based on the costs incurred by a representative group of the most efficient payment service providers in a given year. Competent authorities designated by Member States should be responsible for ensuring compliance by payment service providers with these maximum fees or charges.
Amendment 203 #
Proposal for a regulation
Recital 55
Recital 55
(55) The digital euro should support the programming of conditional digital euro payment transactions by payment service providers. The digital euro should, however, not be “programmable money”, which means units that, due to intrinsically defined spending conditions, can only be used for buying specific types of goods or services, or are subject to time limits after which they are no longer usable. The need for fungibility at par with the digital euro with euro banknotes, whose legal tender status is enshrined in the Treaty and euro coins would logically exclude any form of programmable money. Conditional payment transactions are payments which are automatically triggered by software based on pre-defined and agreed conditions. Conditional payments should not have, as object or effect, the use of digital euro as programmable money. Payment service providers could develop different types of logic to offer a range of conditional payment transactions to digital euro users, including automated payment transactions for placing or withdrawing digital euros, payment standing orders that trigger automatic payments of a specific amount on a specific date, and payments between machines where those machines are programmed to automatically trigger payments for their own spare parts upon ordering them, for charging and paying electricity at most favourable market conditions, for paying insurance, and leasing and maintenance fees on a usage basis.
Amendment 209 #
Proposal for a regulation
Recital 59
Recital 59
(59) To facilitate a harmonised user experience, the digital euro rules, standards and processes that the European Central Bank may adopt pursuant to its own competences, should ensure that any digital euro user is able to carry out digital euro payment transactions with any other digital euro users across the euro area regardless of the payment service providers involved and the front-end services used. To reduce the fragmentation of the European retail payments market, and to support competition, efficiency and innovation in that market, and the development of payment instruments across the Union in keeping with the objective of the Commission’s retail payment strategy, the digital euro should be, to the extent possible, compatible with private digital payment solutions, building on functional and technical synergies. In particular, the European Central Bank should seek to ensure that the digital euro is compatible with private digital payment solutions at the point of interaction, and in person-to- person payments, where the fragmentation of the Union retail payments market is currently significant. The use of open standards, common rules and processes, and possibly shared infrastructures could support such compatibility. Specifically, the ECB should give preference to the use of open standards where such standards are available. While existing solutions may be leveraged where such solutions are deemed appropriate to ensure that compatibility, notably in view of minimising overall adaptation costs, such existing solutions should not create undue dependencies that could prevent adaptation of the digital euro to new technologies or would be incompatible with the digital euro features. In order to achieve these objectives, and without conferring any enforceable rights upon market operators, the European Central Bank should seek to ensure that the digital euro is compatible with private digital payment solutions on a best-effort basis and where deemed appropriate.
Amendment 210 #
Proposal for a regulation
Recital 59
Recital 59
(59) To facilitate a harmonised user experience, the digital euro rules, standards and processes that the European Central Bank may adopt pursuant to its own competences, should ensure that any digital euro user is able to carry out digital euro payment transactions with any other digital euro users across the euro area regardless of the payment service providers involved and the front-end services used. To reduce the fragmentation of the European retail payments market, and to support competition, efficiency and innovation in that market, and the development of payment instruments across the Union in keeping with the objective of the Commission’s retail payment strategy, the digital euro should be, to the extent possible,fully and seamlessly compatible with private digital payment solutions, building on functional and technical synergies. In particular, the European Central Bank should seek to ensure that the digital euro is compatible with private digital payment solutions at the point of interaction, and in person-to- person payments, where the fragmentation of the Union retail payments market is currently significant. The use of open standards, common rules and processes, and possibly shared infrastructures could support such compatibility. While existing solutions may be leveraged where such solutions are deemed appropriate to ensure that compatibility, notably in view of minimising overall adaptation costs, such existing solutions should not create undue dependencies that could prevent adaptation of the digital euro to new technologies or would be incompatible with the digital euro features. In order to achieve these objectives, and without conferring any enforceable rights upon market operators, the European Central Bank should seek to ensure that the digital euro is compatible with private digital payment solutions on a best-effort basis and where deemed appropriate.
Amendment 211 #
Proposal for a regulation
Recital 60
Recital 60
(60) To facilitate dispute resolution, the European Central Bank should provide payment service providers and digital euro users with technical and functional support for dispute resolution, related at least to technical and fraud, fraud and commercial (pre) disputes. Technical disputes include inter alia situations where the transaction amount differs, where there are duplicates, or where there is no authorization or pre- validation. Fraud disputes include inter alia situations of identity theft, merchant identity fraud, counterfeit goods. Commercial disputes include late or no delivery of goods and services or a lack of quality of the goods and services delivered and disputes arising during cancellation or withdrawal processes.
Amendment 214 #
Proposal for a regulation
Recital 63
Recital 63
(63) To enable a smooth user experience, payment service providers that provide digital euro users with front-end services to access and use the digital euro should take care that digital euro users can quickly and easily access and use the digital euro. The front-end services developed by payment service providers should follow a clear branding developed by the European Central Bank that differentiates digital euro services from other payment services and conveys the public nature of the digital euro. In particular, digital euro payment accounts should be clearly labelled by the use of the official digital euro logo. Digital euro payment accounts should be accessed via one the main pages of the Internet website or an application, or any other front-end services, on an equal footing with non- digital euro payment accounts.
Amendment 216 #
Proposal for a regulation
Recital 66
Recital 66
(66) Since payment service providers are not party to a digital euro payment transaction between twoDirective 98/26/EC of the European Parliament and of the Council33 is not applicable to the digital euro users,since digital euro payment transactions do not carry systemic risks and therefore do not warrant designation as a system as defined in Artusers are not exposed to the credit or liquidity risk of any payment servicle 2, point (a), of Directive 98/26/EC of the European Parliament and of the Council33. Dprovider at any stage of the settlement process and digital euro payment transactions should be settled in a matter of seconds and thereforewith no options tofor net should be allowed.ting. __________________ 33 Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment a
Amendment 217 #
Proposal for a regulation
Recital 67
Recital 67
(67) For reasons of contractual freedom and to ensure competition, digital euro users should have the possibility to switch their digital euro payment accounts to different payment service providers free of charge. At the request of the digital euro users, payment service providers should then enable the switching of the digital euro payment accounts, while maintaining the same account identifidigital euro payment account numbers. In exceptional circumstances where a payment service provider is unable to perform this task, including due to having lost the relevant digital euro payment account-related data, the European Central Bank should be able to authorise the switching of digital euro payment accounts so that the new payment service provider designated by the digital euro user can retrieve the information about the digital euro holdings of the digital euro user and complete the switching without relying on the unavailable payment service provider. This process should allow a digital euro user to then continue accessing its digital euro holdings via the new designated payment service provider. The European Central Bank would not have any operational role in the switching on account both in both going concern situations and exceptional circumstances.
Amendment 222 #
Proposal for a regulation
Recital 73
Recital 73
(73) Payment service providers should be able to process personal data in so far as it is necessary to fulfil tasks that are essential to the proper functioning of the digital euro. In line with Article 6(1)(c) of Regulation (EU) 2016/679, processing activities should be considered lawful as regards the digital euro if and to the extent that they are necessary for compliance with a legal obligation to which the controller is subject pursuant to this Regulation. In the framework of this regulation, the processing of personal data for the purposes of the enforcement of holding limits, the initiation of the funding and de- funding of a user’s holdings, and the management of local storage devices for offline digital euro payments are tasks in the public interestcomplies with a legal obligation that areis essential for the protection of citizens making use of the digital euro as well as for the stability and integrity of the Union's financial system. Payment service providers will be the controller of personal data as regards these tasks. In addition, payment service providers may process personal data to comply with existing tasks in the public interest or for compliance with a legal obligation established in Union law that apply to funds defined in Directive (EU) 2015/2366. These tasks apply to the provision of payment services and the prevention and detection of fraud in accordance with Directive (EU) 2015/2366, combatting money laundering and terrorist financing in accordance with Directive (EU) 2015/849, the fulfilment of obligations related to taxation and tax avoidance, and the management of operational and security risks in line with Regulation (EU) 2022/255. No further processing of personal data should be allowed. This includes the access, storage and processing of data by third parties in the framework of open banking.
Amendment 225 #
Proposal for a regulation
Recital 74
Recital 74
(74) Any processing of personal data to verify whether users are listed persons or entities pursuant to restrictive measures adopted in accordance with Article 215 TFEU should be in line with Regulation (EU) 2016/679 of the European Parliament and of the Council. Processing of the names and the payment account identifieruser aliases of natural persons is proportionate and necessary to ensure the compliance with restrictive measures adopted in accordance with Article 215 TFEU providing for asset freeze or prohibition of making funds or economic resources available.
Amendment 226 #
Proposal for a regulation
Recital 75
Recital 75
(75) Offline digital euro payment transactions are payments that occur in close physical proximity (“face-to-face”). They have similarities with transactions in cash and should be treated in a similar way in terms of privacy. In addition, for online digital euro payment transactions, a risk- based approach should be taken allowing for higher levels of privacy up to a monthly transaction limit. Payment service providers should therefore not process personal data related to offline digital euro payment transactions and online digital euro payment transactions up to a monthly transaction limit, but only personal data related to depositing or withdrawing digital euros from digital euro payment accounts to load them onto the local storage devices, or from the local storage devices into the digital euro payment accounts. This includes the identifier of the local storage devices which payment service providers attribute to a digital euro user that holds offline digital euro. That level of privacy would be comparable to withdrawals of banknotes at automatic teller machines when payment service providers process personal data related to a user’s identity and data pertaining to how funding and defunding transactions have been carried out. That means that no transaction data monitoring should occur for offline digital euro payment transactions and no transaction data should be stored on the local storage device. For online payments, no transaction data monitoring should occur up to a monthly transaction limit.
Amendment 227 #
Proposal for a regulation
Recital 76
Recital 76
(76) The European Central Bank and national central banks may process personal data in so far as it is necessary to fulfil tasks that are essential to the proper functioning of the digital euro. In the framework of this regulation, the processing of personal data for the purposes of the settlement of digital euro payment transactions and the management of the security and integrity of the digital euro infrastructure are tasks in the public interest that are essential for the protection of citizens making use of the digital euro as well as for the stability and integrity of the Union's financial system. The legal basis for processing of personal data is therefore provided for in Article 6(1)(e) of Regulation (EU) 2016/679 for national banks and Article 5(1)(a) of Regulation (EU) 2018/1725 for the European Central Bank. The task of maintaining the security and integrity of digital euro infrastructure includes activities related to ensuring the stability and operational resilience of the digital euro. The European Central Bank and national central banks would be the controller of personal data as regards these tasks. The European Central Bank and national central banks would process personal data for these tasks using state-of- the-art security and privacy-preserving measures, such as pseudonymisation or encryption, to ensure that data cannot be used to directly identify a specific digital euro user..
Amendment 228 #
Proposal for a regulation
Recital 77
Recital 77
(77) For the purpose of enforcing the holding limits and ensuring the exceptional switching of digital euro payment accounts in emergency situations upon the request of the digital euro user, a single access pointdecentralised system based on secure multi-party computation of digital euro user identifiers and the related digital euro holding limits is necessary to ensure the efficient functioning of the digital euro across the entire euro area, as digital euro users may hold digital euro payment accounts in different Member States. When establishing the single access pointdecentralised system based on secure multi-party computation, the European Central Bank and national central banks should ensure that the processing of personal data is minimised to what is strictly necessary and that data protection by design and by default is embedded. The European Central Bank and national central banks should consider, where appropriate and to minimise the risk of data breaches, the use of decentralised data storage .
Amendment 230 #
Proposal for a regulation
Recital 78
Recital 78
(78) With its package on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing, adopted by the Commission on 21 July 202138 , (‘AML-package’), the Commission has proposed to significantly strengthen anti-money laundering (‘AML’) rules across the Union. In keeping with that objective and to ensure an effective application of AML/CFT requirements to the digital euro, this Regulation should provide that online digital euro payment transactions are subject to AML/CFT requirements laid down in Directive (EU) 2015/849. above a monthly transaction limit. __________________ 38 Proposal for a regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (COM/2021/420 final); Proposal for a Directive establishing the mechanisms that Member States should put in place to prevent the use of the financial system for ML/TF purposes, and repealing Directive (EU) 2015/849 ( COM/2021/423 final); Proposal for a Regulation creating an EU Authority for anti-money laundering and countering the financing of terrorism (‘AMLA’) (COM/2021/421 final); and Proposal for the recast of Regulation (EU) 2015/847 expanding traceability requirements to crypto-assets (COM/2021/422 final)
Amendment 231 #
Proposal for a regulation
Recital 80
Recital 80
(80) In contrast to offline digital euro payment transactions, online digital euro payment transactions are not limited to physical proximity transactions, and can be used to transfer funds at distance between digital euro users. For higher value online digital euro payment transactions, central bank digital currencies could present greater AML/CFT risks than cash as they would be acting as an instrument whose liquidity is similar to that of cash but without the limitations on portability that are implicit in cash. It should therefore be laid down that an online digital euro payment transaction is to be subject to Directive (EU) 2015/849 of the European Parliament and of the Council, and Regulation (EU) 2015/847 of the European Parliament and of the Council39 when the established monthly transaction limit is exceeded. __________________ 39 Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 5.6.2015, p. 1).
Amendment 232 #
Proposal for a regulation
Recital 83
Recital 83
(83) In order to ensure uniform conditions for the application of holding and transaction limits for offline proximity payments, implementingdelegated powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council40 . The examination procedurerocedure referred to in Article 38 should be used for the adoption of the implementingdelegated acts specifying the transaction and holding limits of the offline digital euro, given that those acts contributes to the fight against money laundering and terrorist financing. __________________ 40 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13), while ensuring to introduce a payment instrument that offers a similar level of privacy than cash.
Amendment 234 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
With a view to adaptpreserving the euro toavailability of public money amid technological changes and to ensuring itsthe use of the euro as a single currency, this Regulation establishes the digital euro and lays down rules concerning in particular its legal tender status, distribution, use, and essential technical features. It aims at contributing to financial stability through the establishment of a direct and fully guaranteed liability of a eurosystem central bank, and at improving financial inclusion throughout the Union.
Amendment 238 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
3. ‘digital euro payment transaction’ means an act, initiated by a payer or on his or her behalf, or by the payee, of placing, transferring or withdrawing digital euro, irrespective of any underlying obligations between the payer and the payee payment transaction as defined in Article 2, point (5) of Directive (EU) 2023/XXX [PSD3], where digital euros are the funds to be placed, transferred or withdrawn;
Amendment 240 #
Proposal for a regulation
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
4. ‘digital euro user’ means anyone making use of a digital euro payment service in the capacity of a holder, payer, payee, or both;
Amendment 241 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
5. ‘digital euro payment account’ means an account held by one or more digital euro users with a payment service providedistributor to access and hold digital euro recorded in the digital euro settlement infrastructure or in an offline digital euro device and to initiate or receive digital euro payment transactions, whether offline or online, and irrespective of technology and data structure;
Amendment 245 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6 a (new)
Article 2 – paragraph 1 – point 6 a (new)
6a. ‘distributor’ means any entity, public or private, providing digital euro payment services;
Amendment 254 #
Proposal for a regulation
Article 2 – paragraph 1 – point 15 a (new)
Article 2 – paragraph 1 – point 15 a (new)
15a. ‘payment transaction data’ means data which is generated by a payment transaction within the processing limits laid down in Annexes III, IV and V;
Amendment 255 #
Proposal for a regulation
Article 2 – paragraph 1 – point 25
Article 2 – paragraph 1 – point 25
25. ‘comparable digital means of payment’ means digital means payment, including debit card payment and instant payment at the point of interaction but excluding credit transfer and direct debit that are not initiatedstruments which may be used in a digital environment where the initiation takes place at the point of interaction;
Amendment 259 #
Proposal for a regulation
Article 2 – paragraph 1 – point 26
Article 2 – paragraph 1 – point 26
26. ‘switching’ means, upon a digital euro user’s request, transferring from one payment service provider to another either the information about all or some digital euro payment services, including recurring payments, executed on a digital euro payment account, or the digital euro holdings from one digital euro payment account to the other, or both, with or without closing the former digital euro payment account, while maintaining the same account identifidigital euro payment account number;
Amendment 266 #
Proposal for a regulation
Article 2 – paragraph 1 – point 27
Article 2 – paragraph 1 – point 27
27. ‘user identifier’ means a unique identifier created by a payment service provider distributing the digital euro that unambiguously differentiates, for online and offline digital euro purposes, digital euro users but that is not attributable to an identifiable natural or legal person by the European Central Bank and the national central banks;
Amendment 268 #
Proposal for a regulation
Article 2 – paragraph 1 – point 28
Article 2 – paragraph 1 – point 28
28. ‘user alias’ means a unique pseudonymous identifier such as the digital euro payment account number, which is unique to a give digital euro payment account, used to protect user’s identity when processing digital euro payments that can only be attributable to an identifiable natural or legal person by the payment service provider distributing the digital euro or by the digital euro user;
Amendment 273 #
Proposal for a regulation
Article 2 – paragraph 1 – point 31 a (new)
Article 2 – paragraph 1 – point 31 a (new)
31a. ‘local storage device’ is a device such as a physical card, a smartphone, or a point-of-sale terminal, allowing to store digital euros for the purpose of offline digital euro payment transactions.
Amendment 280 #
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
2. The digital euro shall be a direct liability item in the balance sheet of the European Central Bank or of national central banks towards digital euro users. The digital euro holdings shall be the property of digital euro users and not of the payment services providers providing digital euro services.
Amendment 286 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. The digital euro shall be governed by the provisions of this Regulation, supplemented by the delegated acts that the Commission is empowered to adopt pursuant to Articles 11, 14, 17, 33, 34, 35 and 38, and by the implementing acts that the Commission is empowered to adopt pursuant to Article 37, 36, 37 and 38. When drafting delegated acts pursuant to Articles mentioned in this paragraph, the Commission shall fully implement the principles of data protection by design and by default, as defined in Regulation (EU) 2016/679.
Amendment 288 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Within the framework of this Regulation, the digital euro shall also be governed by the detailed measures, rules and standards that may be adopted by the European Central Bank pursuant to its own competences. Where these detailed measures, rules and standards have an impact on the protection of individuals’ rights and freedom with regard to the processing of personal data, the European Central Bank shall consult the European Data Protection Supervisor prior to their adoption. Such detailed measures, rules and standards shall fully implement the principles of data protection by design and by default, as defined in Regulation (EU) 2016/679, and shall implement privacy-enhancing technologies.
Amendment 289 #
Proposal for a regulation
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2a. The European Central Bank shall support the establishment of a digital rulebook development group. Its membership rules and internal organisation should include representatives of the stakeholders that will be impacted by the digital euro, including users, payment services providers, and merchants, as well as professionals from the public and private sector with experience in finance and payments. The Rulebook Development Group will work on the basis of the design decisions taken by the Governing Council as regards the digital euro programme. It will report to the Chair of the Rulebook Development Group, who will, in turn, report directly to the Digital Euro Programme Manager.
Amendment 290 #
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. Directive (EU) 2015/2366 of the European Parliament and of the Council, of 25 November 2015, on payment services in the internal market, as replaced by Regulation (EU) [please insert reference – proposal for a Regulation on payment services in the internal market and amending Regulation (EU) No 1093/2010 - COM(2023) 367 final] and Directive (EU) [please insert reference – proposal for a Directive on payment services and electronic money services in the internal market - COM/2023/366 final], shall govern the supervision by competent authorities, the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning compliance by Payment Services Providers of their obligations pursuant to Chapters IV, V, VI and VII of this Regulation.
Amendment 291 #
Proposal for a regulation
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
2a. Regulation (EU) 2016/679 of the European Parliament and of the Council, of 27 April 2016, on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC [General Data Protection Regulation] and Regulation (EU) 2018/1725 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC [EUDPR] shall govern the supervision by competent authorities, the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and the host Member States, concerning compliance by data controllers of their obligations pursuant to Chapter VIII of this Regulation.
Amendment 296 #
Proposal for a regulation
Article 9 – paragraph 1 – point a
Article 9 – paragraph 1 – point a
(a) where the payee is a an enterprise which employs fewer than 10 persons or whose annual turnover or annual balance sheet total does not exceed EUR 2 million, or is a non-profit legal entity as defined in in Article 2, point (18), of Regulation (EU) 2021/695 of the European Parliament and of the Council44 , unless it accepts comparable digital means of payment; or credit cards; __________________ 44 Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 170, 12.5.2021, p. 1).
Amendment 308 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
The Commission is empowered to adopt delegated acts in accordance with Article 38 to supplement this Regulation by identifying additional exceptions of a monetary law nature to the principle of mandatory acceptance. Those exceptions shall be justified by an objective of public interest and proportionate to that aim, shall not undermine the effectiveness of the legal tender status of the digital euro, and shall only be permitted provided that other public means for the payment of monetary debts are available. When preparing those delegated acts, the Commission shall consult the European Central Bank.
Amendment 310 #
Proposal for a regulation
Article 12 a (new)
Article 12 a (new)
Article 12a Compatibility digital euro and commercial bank money The digital euro shall be fully and seamlessly compatible with commercial bank accounts.
Amendment 311 #
Proposal for a regulation
Article 12 b (new)
Article 12 b (new)
Article 12b Distribution Member States shall ensure that natural and legal persons residing or established in the Member States whose currency is the euro shall have access to digital euros through public intermediaries as set out in Article 14 (3), which will act as a distributor of the digital euro.
Amendment 312 #
Proposal for a regulation
Article 13 – paragraph 1 – subparagraph 1 – introductory part
Article 13 – paragraph 1 – subparagraph 1 – introductory part
Amendment 333 #
Proposal for a regulation
Article 13 – paragraph 4 – subparagraph 2
Article 13 – paragraph 4 – subparagraph 2
For the purpose of points (a) and (b), and upon prior approvalermission 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 or decide not to link a non-digital euro account at all.
Amendment 336 #
Proposal for a regulation
Article 13 – paragraph 4 a (new)
Article 13 – paragraph 4 a (new)
4a. Where an online digital euro payment transaction is initiated by a digital euro user, whether funded by a non-digital euro payment account or not, the following shall apply: (a) the payment service provider providing the digital euro payment account shall perform the strong authentication of the digital euro user in accordance with Article 97 paragraph 1 of Directive EU 2015/2366; (b) in case of unauthorized payment transaction, the payment service provider providing the digital euro payment account shall be liable in accordance and within the conditions set out in Articles 72 and 73 of Directive 2015/2366 of 25 November 2015 on payment services in the internal market. Accordingly, and where applicable, it shall refund the digital euro user the amount of the unauthorised payment transaction on the debited digital euro payment account and on the debited non-digital euro payment account; (c) the digital euro user shall address his complaint only to the payment service provider providing the digital euro account, without any recourse to the payment service provider providing the non-digital euro payment account.
Amendment 340 #
Proposal for a regulation
Article 13 – paragraph 6
Article 13 – paragraph 6
6. For the purpose of digital euro payment services, digital euro users shall only enter into a contractual relationship with PSPs. Digital euro users shall not have any contractual relationship with the European Central Bank or the national central banks. This is without prejudice to the possibility of appointing the national central bank as the public entity of a Member State distributing the digital euro.
Amendment 343 #
Proposal for a regulation
Article 13 – paragraph 6 a (new)
Article 13 – paragraph 6 a (new)
6a. In case a payment service provider providing digital euro payment services enters into insolvency or other similar proceedings, the digital euro holdings of digital euro users would not be affected.
Amendment 348 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. For the purpose of distributing the digital euro to natural persons referred to in Article 13(1)(a), credit institutions that provide payment services as referred to in points (1), (2) or (3) of Annex I to Directive (EU) 2015/2366 shall, upon request of their clients, provide those persons with all basic digital euro payment services as referred to in Annex IIrticle 14a. The Commission is empowered to adopt delegated acts in accordance with Article 38 to supplement this Regulation by identifying additional basic digital euro payment services and further specifying the scope of existing basic digital euro payment services.
Amendment 355 #
Proposal for a regulation
Article 14 – paragraph 3 – introductory part
Article 14 – paragraph 3 – introductory part
3. Member States shall designate the authorities referred to in Article 1, point (f), of the Directive (EU) 2015/2366, national central banks referred to in Article 1, point (e) of that Directive, or post office giro institutions referred to in Article 1, point (c), of theat Directive (EU) 2015/2366, to:
Amendment 359 #
Proposal for a regulation
Article 14 – paragraph 3 – point a
Article 14 – paragraph 3 – point a
(a) provide basic digital euro payment services to natural persons referred to in Article 13(1)(a) that do not hold or do not wish to hold a non-digital euro payment accountonline and face-to-face in physical proximity;
Amendment 362 #
Proposal for a regulation
Article 14 – paragraph 3 – point b
Article 14 – paragraph 3 – point b
(b) provide basic digital payment services and provide digital inclusion support provideonline and face-to-face in physical proximity, including to persons with disabilities, functional limitations or limited digital skills, and elderly people.
Amendment 363 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Payment service providers referred to in paragraphs 1 to 3 shall provide digital inclusion support, including to persons with disabilities, functional limitations or limited digital skills, and elderly persons. Without prejudice to paragraph 3, point (b), digital inclusion support shall comprise a dedicated assistance for onboarding to a digital euro account and using all basic digital euro services.
Amendment 364 #
Proposal for a regulation
Article 14 – paragraph 5
Article 14 – paragraph 5
5. TBy [one year after the adoption of this Regulation], the European Banking Authority shall, after consulting all relevant stakeholders, including the anti- money laundering authority of the Union (‘AMLA’) established under Regulation (EU) [please insert reference - proposal for a Regulation creating an EU Authority for anti-money laundering and countering the financing of terrorism (‘AMLA’) - COM/2021/421 final)] and the European Banking Authority shall jointly issue guideline, develop draft regulatory technical standards specifying the interaction between AML/CFT requirements and the provision of basic digital euro payment services with a particular focus on financial inclusion of vulnerable groups including asylum seekers or beneficiaries of international protection, individuals with no fixed address or third country nationals who are not granted a residence permit but whose expulsion is impossible for legal or factual reasons. Those regulatory technical standards shall not imply that payment service providers register the status of potential digital euro users, including as asylum seeker or beneficiary of international protection or individual with no fixed address or third country national who is not granted a residence permit, but whose expulsion is impossible for legal or factual reasons. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 367 #
Proposal for a regulation
Article 14 a (new)
Article 14 a (new)
Article 14a Basic digital euro payment services Basic digital euro payment services for natural persons shall consist of: (a) opening, holding, and closing and switching of a digital euro payment account; (b) consulting balances and transactions; (c) funding and defunding from a non-digital euro payment account; (d) funding and defunding from/into cash; (e) initiation and reception of digital euro payment transactions by means of an electronic payment instrument, to the exclusion of conditional digital euro payment transactions other than standing orders and direct debits, in the following use cases: – person-to-person people digital euro payment transactions; – point-of-interaction digital euro payment transactions, including point-of- sale and e-commerce; – government-to-person and person- to-government digital euro payment transactions. (f) digital euro payment transactions referred to in Article 13(4); (g) provision of at least one electronic payment instrument, one of which shall be a payment card, for the execution of digital euro payment transactions such as referred to in letter (e); (h) provision of digital inclusion support under Article 14; and (i) access to the dispute mechanism under Article 27.
Amendment 378 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. With a view to enabling natural and legal persons to access and use digital euro, to defining and implementing monetary policy and to contributing to the stability of the financial systemAs the digital counterpart of cash money, the digital euro shall be available as a store of value and as a means of payment. However, the use of the digital euro as a store of value may be subject to proportionate, temporary and duly justified limits.
Amendment 393 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. For the purpose of Article 15(1), the European Central Bank shallmay develop instruments to limit the use of the digital euro as a store of value and shall decide on their parameters, duration, and use, in accordance with the framework set out in this Article. PSPs providing account servicing payment services within the meaning of Directive 2015/2366 to natural and legal persons referred to in Article 12(1) shall apply these limits to digital euro payment accounts.
Amendment 396 #
Proposal for a regulation
Article 16 – paragraph 1 a (new)
Article 16 – paragraph 1 a (new)
1a. The holding limit referred to in paragraph 1 shall be high enough to encourage the uptake of the digital euro and shall be gradually phased out until completely lifted.
Amendment 397 #
Proposal for a regulation
Article 16 – paragraph 2 – introductory part
Article 16 – paragraph 2 – introductory part
2. The parameters, duration, and use of the instruments referred to in paragraph 1 shall:
Amendment 400 #
Proposal for a regulation
Article 16 – paragraph 2 – point b
Article 16 – paragraph 2 – point b
(b) ensure the usability and acceptance of the digital euro as a legal tender instrument, including without using the waterfall and reverse waterfall functionalities;
Amendment 404 #
Proposal for a regulation
Article 16 – paragraph 2 – point c
Article 16 – paragraph 2 – point c
(c) respect the principle of proportionality, including in view of data protection and privacy objectives.
Amendment 410 #
Proposal for a regulation
Article 16 – paragraph 3
Article 16 – paragraph 3
3. The European Central Bank shall publicly report on how it applied the parameters and use of the instruments referred to in paragraph 1, which shall be applied in a non-discriminatory manner and uniformly across the euro area. It shall also communicate on the duration of the envisaged phase-out path of the holding limits.
Amendment 423 #
Proposal for a regulation
Article 16 – paragraph 7 a (new)
Article 16 – paragraph 7 a (new)
7a. Payment service providers shall not impose additional holding, transaction or withdrawal limits on its digital euro accounts.
Amendment 424 #
Proposal for a regulation
Article 16 – paragraph 8
Article 16 – paragraph 8
Amendment 458 #
Proposal for a regulation
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
2a. For the purposes of Article 15(2), payment service providers shall not charge flat fees to merchants and public sector entities that would only apply in respect of the acceptance of digital euro.
Amendment 459 #
Proposal for a regulation
Article 17 – paragraph 2 b (new)
Article 17 – paragraph 2 b (new)
2b. For the purpose of Article 15(2) and to ensure the widest possible acceptance of the digital euro, low value payments beneath a certain limit shall carry no merchant service charge or inter-PSP fee. The Commission shall be empowered to adopt delegated acts in accordance with Article 38 to set such limits.
Amendment 461 #
Proposal for a regulation
Article 17 – paragraph 3
Article 17 – paragraph 3
3. The European Central Bank shall regularly monitor the information that is relevant for the purposes of the calculation of the amounts referred to in paragraph 2, and publish periodically the amounts resulting from that monitoring with an explanatory report and transmit to the Commission the underlying calculations.
Amendment 467 #
Proposal for a regulation
Article 17 – paragraph 4
Article 17 – paragraph 4
4. The European Central Bank may require payment service providers to provide all information necessary for the application of this Article and to verify compliance with it. Any information requested shall be sent by payment service providers within the time limit set by the European Central Bank. The European Central Bank mayshall require that such information is certified by an independent auditor.
Amendment 469 #
Proposal for a regulation
Article 17 – paragraph 4 a (new)
Article 17 – paragraph 4 a (new)
4a. Where the information referred to in paragraph 4 concerns personal data, the European Central Bank shall require only the data that is strictly necessary for the purposes of the processing, and in full implementation of the principle of data minimisation. The requests for information by the ECB shall always be in writing, reasoned and occasional, and shall not concern the entirety of a filing system or lead to the interconnection of filing systems.
Amendment 472 #
Proposal for a regulation
Article 17 – paragraph 5 – introductory part
Article 17 – paragraph 5 – introductory part
5. The methodology to be developed by the European Central Bank for the monitoring and the calculations of the amounts referred to in paragraphs 2 and 3Commission shall be empowered to adopt delegated acts in accordance with Article 38 to set the maximum levels of the merchant service charge and inter-PSP fees referred to in paragraph 2, using a methodology it shall develop after verifying that the amounts calculated by the European Central Bank are aligned with the methodology it has adopted. The methodology shall be based on the following parameters:
Amendment 477 #
Proposal for a regulation
Article 17 – paragraph 5 – point a
Article 17 – paragraph 5 – point a
(a) the amount of inter-PSP fees and merchant service charges as referred to in paragraph 2(a) shall be based on the relevant costs incurred for providing digital euro payment services by the most cost- efficient payment service providers representing collectively one fourth of digital euro distributed across the euro area in a given year, as reported to the European Central Bank by payment service providers, including a reasonable margin of profit;
Amendment 485 #
Proposal for a regulation
Article 17 – paragraph 5 – point c
Article 17 – paragraph 5 – point c
(c) the amount of inter-PSPs fees and merchant service charges as referred to in paragraph 2(b) shall be based on a representative group of payment services providersthe relevant costs incurred for providing comparable digital means of payment in the euro area by the most cost-efficient payment service provider in a given year, as reported to the European Central Bank by payment service providers;
Amendment 489 #
Proposal for a regulation
Article 17 – paragraph 7
Article 17 – paragraph 7
7. No inter-PSP distributor fee shall apply to the funding and defunding of the digital euro, including digital euro payment transactions referred to in Article 13(4).
Amendment 494 #
Proposal for a regulation
Article 17 a (new)
Article 17 a (new)
Article 17a Comparability of fees for optional and value-added services 1. For optional and value-added services Article 3, 4, 5 paragraph 3, 4 and 5, Article 6, 7 and 8 of the Directive 2014/92/EU on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features shall apply to digital euro accounts. 2. Without prejudice to Articles 47 and 48 of Directive 2007/64/EC and Article 12 of Directive 2008/48/EC, Member States shall ensure that payment service providers provide the consumer, at least annually and free of charge, with a statement of all fees incurred for optional and value-added services linked to a digital euro account. Where applicable, payment service providers shall use the standardised terms set out in the final list referred to in Article 3(5) of the Directive 2014/92/EU. The communication channel used to provide the statement of fees shall be agreed with the consumer. The statement of fees shall be provided on paper at least upon the request of the consumer. 3. The statement of fees shall specify at least the following information: (a) the unit fee charged for each service and the number of times the service was used during the relevant period, and where the services are combined in a package, the fee charged for the package as a whole, the number of times the package fee was charged during the relevant period and the additional fee charged for any service exceeding the quantity covered by the package fee; (b) the total amount of fees incurred during the relevant period for each service, each package of services provided and services exceeding the quantity covered by the package fee; (c) the total amount of fees charged for all services provided during the relevant period.
Amendment 497 #
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Payment service providers may only distribute the digital euro to natural and legal persons residing or established in a Member State whose currency is not the euro if the European Central Bank and the national central bank of that Member State have signed an arranggreement to that effect.
Amendment 500 #
Proposal for a regulation
Article 18 – paragraph 2 – introductory part
Article 18 – paragraph 2 – introductory part
2. The signing of the arranggreement referred to in paragraph 1 shall be subject to all of the following conditions:
Amendment 502 #
Proposal for a regulation
Article 18 – paragraph 2 – point b – introductory part
Article 18 – paragraph 2 – point b – introductory part
(b) in its request, the Member State whose currency is not the euro has undertaken to conclude an agreement with the European Central Bank that should include at minimum the following commitments:
Amendment 503 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
3. The agreement referred to in paragraph 1shall specify the necessary implementing measures and procedures, and the cases under which the agreement may be restricted, suspended, or terminated, in particular where the third country has been identified as a third country with significant strategic deficiencies in its national anti-money laundering and combating the financing of terrorism regime as referred to in Article 23 of Regulation [please insert reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final] or as a third country with compliance weaknesses in its national anti-money laundering and combating the financing of terrorism regime as referred to in Article 24 of Regulation [please insert reference – proposal for Anti- Money Laundering Regulation - COM/2021/420 final] or as a third country posing a threat to the Union’s financial system as referred to in Article 25 of Regulation [please insert reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final]. That agreement shall be complemented by an arrangement between the European Central Bank and the national central bank and, where appropriate, the national competent authority of the third country.
Amendment 505 #
Proposal for a regulation
Article 18 – paragraph 4
Article 18 – paragraph 4
4. Payment service provideDistributors shall implement the limits set by the European Central Bank in accordance with Article 16(4) on the use of the digital euro by natural and legal persons residing or established in Member States whose currency is not the euro, which are applicable in those Member States.
Amendment 506 #
Proposal for a regulation
Article 19 – paragraph 2 – point a – introductory part
Article 19 – paragraph 2 – point a – introductory part
(a) the third country ensures, subject to a verification procedure by the European Central Bank, that:
Amendment 507 #
Proposal for a regulation
Article 19 – paragraph 2 – point c
Article 19 – paragraph 2 – point c
(c) the third country ensures that intermediaries established or operating in the third country that distribute the digital euro are subject to supervisory and regulatory requirements, that are at least equivalent to those applied to payment service providers established in the Union. This equivalence shall be verified by an equivalence decision in the form of an implementing act of the Commission.
Amendment 509 #
Proposal for a regulation
Article 19 – paragraph 3
Article 19 – paragraph 3
3. The agreement between the Union and the third country shall specify the necessary implementing measures and procedures, and the cases under which the agreement may be restricted, suspended, or terminated, in particular where the third country has been identified as a third country with significant strategic deficiencies in its national anti-money laundering and combating the financing of terrorism regime as referred to in Article 23 of Regulation [please insert reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final] or as a third country with compliance weaknesses in its national anti-money laundering and combating the financing of terrorism regime as referred to in Article 24 of Regulation [please insert reference – proposal for Anti-Money Laundering Regulation - COM/2021/420 final]. That agreement shall be complemented by an arrangIn addition, an agreement between the European Central Bank and the national central bank and, where appropriate, the national competent authority of the third country shall be concluded on the further implementing details necessary for the distribution of the digital euro in such third country. Both agreements shall be concluded in advance of the distribution of the digital euro in the relevant third country.
Amendment 510 #
Proposal for a regulation
Article 20 – paragraph 2
Article 20 – paragraph 2
2. Subject to further conditions that may be agreed upon between the Union and the third country or territory concerned and subject to the conclusion of an agreement between the relevant third country’s central bank and the European Central Bank, the distribution of the digital euro to natural and legal persons residing or established in third countries or territories governed by the monetary agreement referred to in paragraph 1 shall meet the requirements laid down in this Regulation.
Amendment 511 #
Proposal for a regulation
Article 21 – paragraph 1
Article 21 – paragraph 1
1. CIn accordance with the Treaties, cross-currency payments between the digital euro and other currencentral bank digital currencies of Member States whose currency is not the euro or third countries shall be subject to prior agreements between, on the one hand, the European Central Bank and, on the other hand, the national central banks of the Member States whose currency is not the euro and the third countries.
Amendment 512 #
Proposal for a regulation
Article 21 – paragraph 2
Article 21 – paragraph 2
2. The European Central Bank shallmay, in accordance with the Treaties, cooperate with national central banks of Member States whose currency is not the euro to enable interoperable payments between the digital euro and other currencies.
Amendment 516 #
Proposal for a regulation
Article 22 – paragraph 2
Article 22 – paragraph 2
2. In their relationships with their payment services providedistributors for the provision of digital euro payment services, digital euro users shall not be required to have or open non- digital euro payment accounts or accept other non-digital euro products.
Amendment 527 #
Proposal for a regulation
Article 24 – paragraph 2
Article 24 – paragraph 2
2. TIn accordance with the Treaties, the digital euro shall not be programmable money.
Amendment 531 #
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
The European Central Bank shall seek to ensure to the extent possible the interoperability of standards governing digital euro payment services with relevant standards governing private digital means of payment. The European Central Bank shall seek to enablenable and encourage, to the extent possible and where appropriate, private digital means of payment to use rules, standards and processes governing the digital euro payment services, including the full implementation of the principles of data protection by design and by default, as defined in Regulation (EU) 2016/679.
Amendment 534 #
Proposal for a regulation
Article 26 – paragraph 2
Article 26 – paragraph 2
Amendment 539 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. The European Central Bank and the national central banks mayshall make mechanisms available for payment services providers to facilitate the exchange of messages for the resolution of disputes, including commercial disputes. Those mechanisms may be operated directly by the European Central Bank or by the providers of support services designated by the European Central Bank. Dispute mechanisms shall be easily accessible and usable for consumers and offered free of charge to them.
Amendment 546 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. TNeither the European Central Bank nor the national central banks shall not act as a party in any of the disputes referred to in paragraphs 1 and 2.
Amendment 559 #
Proposal for a regulation
Article 28 – paragraph 1 – subparagraph 1 a (new)
Article 28 – paragraph 1 – subparagraph 1 a (new)
The front-end services developed by payment service providers in accordance with point (a) of the first subparagraph should follow a clear branding developed by the European Central Bank that differentiates digital euro services from other payment services.
Amendment 563 #
Proposal for a regulation
Article 28 – paragraph 3 – point a a (new)
Article 28 – paragraph 3 – point a a (new)
(aa) digital euro payment services convey the public nature of the digital euro;
Amendment 571 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Final settlement of online digital euro payment transactions shall occur at the moment of recording the transfer of the digital euros concerned from the payer to the payee in the digital euro settlement infrastructure approved by the Eurosystem. The settlement infrastructure shall be designed in such a way that neither the European Central Bank nor national central banks can attribute data to an identified or identifiable digital euro user.
Amendment 573 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. Payment service providers shall enable digital euro users at their request to switch their digital euro payment accounts to other payment service providers while maintaining the same account identifidigital euro payment account numbers.
Amendment 579 #
Proposal for a regulation
Article 31 – paragraph 2
Article 31 – paragraph 2
2. In exceptional circumstances where a payment service provider is operationally not in a position to provide digital euro payment services to digital euro users for a prolonged period of time, or has lost the digital euro payment account-related data concerned, the European Central Bank and national central banks may authorise the switching of digital euro payment accounts held with that payment service provider to another payment service provider designated by the digital euro user. That switching shall enable the new payment service provider to complete the switching without relying on the unavailable payment service provider. The switching service shall not result in data access by the European Central Bank and national central banks under normal circumstances.
Amendment 581 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
1. The European Central Bank may facilitate the fraud detection and prevention tasks that payment service providers shall perform under Directive 2015/2366 by establishing a general fraud detection and prevention mechanism for online digital euro transactions to ensure the smooth and efficient functioning of the digital euro. That general fraud detection and prevention mechanism may be operated directly by the European Central Bank and the National Central Banks or by the providers of support services designated by the European Central Bank.
Amendment 582 #
Proposal for a regulation
Article 32 – paragraph 2
Article 32 – paragraph 2
2. The European Central Bank shall consult the European Data Protection Supervisor and the Anti-Money Laundering Authority prior to developing the details on the operational elements of the fraud detection and prevention mechanism.
Amendment 585 #
Proposal for a regulation
Article 32 – paragraph 3 – point b
Article 32 – paragraph 3 – point b
(b) support payment service providers in securing payment information and detecting fraudulent transactions in online digital euro payment transactions that have been settled.
Amendment 592 #
Proposal for a regulation
Article 34 – paragraph 1 – subparagraph 1 – introductory part
Article 34 – paragraph 1 – subparagraph 1 – introductory part
Payment service providers perform a task in the public interestcomply with a legal obligation where they process personal data that is strictly necessary for the following purposes:
Amendment 596 #
Proposal for a regulation
Article 34 – paragraph 1 – subparagraph 1 – point a
Article 34 – paragraph 1 – subparagraph 1 – point a
(a) the enforcement of limits, including the verification ofby verifying whether prospective or existing digital euro users have digital euro accounts with another PSP, as referred to in Article 16;
Amendment 597 #
Proposal for a regulation
Article 34 – paragraph 1 – subparagraph 1 – point c
Article 34 – paragraph 1 – subparagraph 1 – point c
(c) the provision of offline digital euro, including the registration and de- registration of the local storage devices as referred to in letter (b) of Annex I;
Amendment 599 #
Proposal for a regulation
Article 34 – paragraph 1 – subparagraph 1 a (new)
Article 34 – paragraph 1 – subparagraph 1 a (new)
No further processing of personal data shall be allowed.
Amendment 600 #
Proposal for a regulation
Article 34 – paragraph 1 – subparagraph 1 b (new)
Article 34 – paragraph 1 – subparagraph 1 b (new)
For the provision of online digital euro below a maximum monthly payment transaction limit of EUR 3000 and for offline digital euro, the processing of personal data by payment service providers is limited to funding and defunding in accordance with Article 37 paragraphs 3, 4 and 5.
Amendment 601 #
Proposal for a regulation
Article 34 – paragraph 1 a (new)
Article 34 – paragraph 1 a (new)
1a. By way of derogation from the Regulation (EU) [please insert reference – proposal for a Regulation on payment services in the internal market and amending Regulation (EU) No 1093/2010 - COM(2023) 367 final], personal data on digital euro accounts shall not be used, accessed or stored by third parties.
Amendment 607 #
Proposal for a regulation
Article 34 – paragraph 4
Article 34 – paragraph 4
4. Payment service providers shall implement appropriate technical and organisational measures including state-of- the-art security and privacy-preserving measures to ensure that any data communicated to the European Central Bank and the national central banks or to providers of support services do not directly identify individual digital euro userscan no longer be directly or indirectly attributed to individual digital euro users without the use of additional information.
Amendment 609 #
Proposal for a regulation
Article 34 – paragraph 4 a (new)
Article 34 – paragraph 4 a (new)
4a. This Article is without prejudice to additional digital euro payment services developed and provided by payment service providers on top of basic digital euro payment services, for which Article 6(1)(a) or (b) of Regulation (EU) 2016/679 would apply, considering that these services are subject to Directive (EU) 2015/2366.
Amendment 610 #
Proposal for a regulation
Article 34 – paragraph 4 b (new)
Article 34 – paragraph 4 b (new)
4b. For the purpose of authentication and identification and in line with the principles of data minimisation and privacy by design and by default as laid down in 2016/679/EU, payment service providers shall provide by default authentication and identification methods which do not rely on biometric data.
Amendment 615 #
Proposal for a regulation
Article 35 – paragraph 4
Article 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 no longer directly or indirectly identify individual digital euro users without the use of additional information.
Amendment 618 #
Proposal for a regulation
Article 35 – paragraph 6 a (new)
Article 35 – paragraph 6 a (new)
6a. The European Central Bank shall in cooperation with payment service providers take all necessary measures to ensure the effectiveness of data subjects' rights under the General Data Protection Regulation.
Amendment 620 #
Proposal for a regulation
Article 35 – paragraph 8
Article 35 – paragraph 8
8. For purpose of supporting the task of payment service providers to enforce the holding limits in accordance to Article 16(1) and ensuring the emergency switching upon the request of the user in accordance with Article 31(2), the ECB may alone or jointly with national central banks establish a single access point of digital euro user identifiers and the relateddecentralised system based on secure multi-party computation to enforce the digital euro holding limits as referred to in point (4) of Annex 4. 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 pointdecentralised system based on secure multi-party computation by entities other than payment service providers whose customer or potential customer is the digital euro user.
Amendment 621 #
Proposal for a regulation
Article 36 – paragraph 1 – introductory part
Article 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 PSPs. In such a situation, payment service providers perform a task in the public interest, where they process personal data forshall solely process personal data where they perform a task in the public interest pursuant to Article 6(1)(e) of Regulation (EU) 2016/679, which are limited to the following purposes:
Amendment 626 #
Proposal for a regulation
Article 36 – paragraph 4
Article 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 no longer directly or indirectly identify individual digital euro users without the use of additional information.
Amendment 628 #
Proposal for a regulation
Article 36 – paragraph 4 a (new)
Article 36 – paragraph 4 a (new)
4a. Providers of support services designated under this Article shall be subject to Regulation (EU) 2022/2554.
Amendment 629 #
Proposal for a regulation
Article 36 – paragraph 5
Article 36 – paragraph 5
Amendment 632 #
Proposal for a regulation
Article 37 – paragraph 1
Article 37 – paragraph 1
1. Payment services providers shall apply paragraphs 2 to 6 to online digital euro payment transactions upon the request of the user up to a monthly transaction limit and offline digital euro payment transactions.
Amendment 635 #
Proposal for a regulation
Article 37 – paragraph 2
Article 37 – paragraph 2
2. Transaction data shall not be accessed, stored or processed retained by payment service providers or by the European central banks and the national central banks and shall not be stored on the local storage device.
Amendment 642 #
Proposal for a regulation
Article 37 – paragraph 5
Article 37 – paragraph 5
5. The Commission is empowered to adopt implementingdelegated acts setting offline digital euro payment transaction limits and holding limits. Those implementingdelegated acts shall be adopted in accordance with the examination procedure referred to in Article 398.
Amendment 647 #
Proposal for a regulation
Article 37 – paragraph 6 – subparagraph 1 – introductory part
Article 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 implementingdelegated acts referred to in paragraph 5, shall take into account in particular the following:
Amendment 650 #
Proposal for a regulation
Article 37 – paragraph 6 – subparagraph 1 – point c a (new)
Article 37 – paragraph 6 – subparagraph 1 – point c a (new)
(ca) the objective of introducing a payment instrument offering a similar level of privacy than cash.
Amendment 651 #
Proposal for a regulation
Article 37 – paragraph 6 – subparagraph 2
Article 37 – paragraph 6 – subparagraph 2
For the purposes of point (a), the Commission may request AMLA to adopt an opinionshall consult AMLA, which shall assessing the level of money laundering and terrorist financing threats associated with the offline digital euro and its vulnerabilities. The Commission may consult the European Data Protection Board.
Amendment 653 #
Proposal for a regulation
Article 38 – paragraph 2
Article 38 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 11, 14, 17, 33, 34, 35 and 357 shall be conferred on the Commission for an indeterminate period of time from [date of entry into force of this Regulation].
Amendment 656 #
Proposal for a regulation
Article 38 – paragraph 3
Article 38 – paragraph 3
3. The power to adopt the delegated acts referred to in Articles 11, 14, 17, 33, 34, 35 and 357 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.
Amendment 657 #
Proposal for a regulation
Article 38 – paragraph 3 a (new)
Article 38 – paragraph 3 a (new)
3a. When adopting delegated acts pursuant to Article 34 or Article 35 of this Regulation, the European Commission shall consult the European Data Protection Supervisor and European Data Protection Board as laid down in Article 42 of the Regulation (EU) 2018/1725 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC.
Amendment 658 #
Proposal for a regulation
Article 38 – paragraph 4
Article 38 – paragraph 4
4. Before adopting a delegated act, the Commission shall consult the European Data Protection Supervisor pursuant to Article 42 of Regulation (EU) 2018/1725 and 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.
Amendment 659 #
Proposal for a regulation
Article 38 – paragraph 6
Article 38 – paragraph 6
6. A delegated act adopted pursuant to Articles 11, 14, 17, 33, 34 and 35 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of one 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 two months at the initiative of the European Parliament or of the Council.
Amendment 662 #
Proposal for a regulation
Article 39
Article 39
Amendment 666 #
Proposal for a regulation
Article 40 – paragraph 2 – introductory part
Article 40 – paragraph 2 – introductory part
2. Before the planned issuance of the digital euro and ahead of the implementation of any changes of the parameters and use of the instruments referred to in Article 16 and Article 16a or at least every three years after the issuance of the digital euro, the European Central Bank shall provide to the European Parliament, the Council and the Commission:
Amendment 667 #
Proposal for a regulation
Article 40 – paragraph 2 – introductory part
Article 40 – paragraph 2 – introductory part
2. Before the planned issuance of the digital euro and ahead of the implementation of any changes of the parameters and use of the instruments referred to in Article 16 or at least every three years after the issuance of the digital euro, the European Central Bank shall provide to the European Parliament, the Council and the Commission:
Amendment 669 #
Proposal for a regulation
Article 40 – paragraph 2 – point a
Article 40 – paragraph 2 – point a
(a) information on the instruments to limit the use of the digital euro and their duration as referred to in Article 16 and the parameters that the European Central Bank plans to adopt in view of the prevailing financial and monetary environment;
Amendment 671 #
Proposal for a regulation
Article 40 – paragraph 2 – point b
Article 40 – paragraph 2 – point b
(b) an analysis on how the instruments and the parameters referred to in point (a) are expected to contribute to meet the objective of ensuring price stability and safeguarding financial stability.
Amendment 672 #
Proposal for a regulation
Article 40 – paragraph 2 – point b a (new)
Article 40 – paragraph 2 – point b a (new)
(ba) an analysis on how the instruments and the parameters referred to in point (a) are expected to ensure the usability and acceptance of the digital euro as a legal tender instrument including without using the waterfall and reverse waterfall functionalities;
Amendment 674 #
Proposal for a regulation
Article 40 – paragraph 2 – point b b (new)
Article 40 – paragraph 2 – point b b (new)
(bb) an analysis on how the instruments and the parameters referred to in point (a) respect the principle of proportionality, including with regards to privacy and data protection.
Amendment 678 #
Proposal for a regulation
Article 40 – paragraph 3 – introductory part
Article 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 parameters and the use of instruments referred to in Article 16 on:
Amendment 680 #
Proposal for a regulation
Article 40 – paragraph 4 – subparagraph 1 – introductory part
Article 40 – paragraph 4 – subparagraph 1 – introductory part
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:
Amendment 686 #
Proposal for a regulation
Annex I – paragraph 1 – point a
Annex I – paragraph 1 – point a
(a) enabling digital euro users to access, hold, and use the digital euro, without prejudice to possible temporary limitations set by the European Central Bank in accordance with Article 16;
Amendment 688 #
Proposal for a regulation
Annex II
Annex II
Amendment 694 #
Proposal for a regulation
Annex II – paragraph 1 – point c
Annex II – paragraph 1 – point c
(c) non-automated funding and defunding from a non- digital euro payment account;
Amendment 705 #
Proposal for a regulation
Annex III – point 1 – point iii
Annex III – point 1 – point iii
(iii) information on digital euro payment accounts; including information on digital euro holdings of the digital euro user and the unique digital euro payment account number; and
Amendment 707 #
Proposal for a regulation
Annex III – point 1 – point iv
Annex III – point 1 – point iv
(iv) information on online digital euro payment transactions, including the transaction identifier and the transaction amount.
Amendment 709 #
Proposal for a regulation
Annex III – point 2 – point iii
Annex III – point 2 – point iii
(iii) information on digital euro payment accounts, including the unique digital euro payment account number; and
Amendment 711 #
Proposal for a regulation
Annex III – point 2 – point iv
Annex III – point 2 – point iv
(iv) information of non-digital euro payment accounts, including the account number of the linked non-digital euro payment account.
Amendment 718 #
Proposal for a regulation
Annex IV – point 4 – introductory part
Annex IV – point 4 – introductory part
4. For the purposes of points (d) and (e) of Article 35(1), and the single access pointdecentralised system based on secure multi-party computation referred to in Article 34(8), processing shall be limited to:
Amendment 720 #
Proposal for a regulation
Annex V – paragraph 1 – point i
Annex V – paragraph 1 – point i
(i) information on digital euro payment accounts, including the unique digital euro account identifierthe user alias;
Amendment 722 #
Proposal for a regulation
Annex V – paragraph 1 – point ii
Annex V – paragraph 1 – point ii
(ii) information on online digital euro payment transactions, including the transaction amount; and
Amendment 724 #
Proposal for a regulation
Annex V – paragraph 1 – point iii
Annex V – paragraph 1 – point iii
(iii) the device internet protocol address-range providing information on the transaction session of a digital euro user, including the device internet protocol address-range.