The Institute of International Finance welcomes the opportunity to respond to the European Commission (EC) questionnaire on a potential euro-denominated central bank digital currency (CBDC). We commend the EC for taking this step forward in considering this momentous issue.

The IIF with its members has developed a substantive response to the questionnaire in view of the significant implications that any design or issuance decision around a CBDC may have for the eurozone economy and financial system, and the resulting global and cross-border impacts of any digital euro.

We stress the importance of the EC and/or European Central Bank (ECB) developing their thinking around a potential digital euro in close collaboration with the private sector. The IIF applauds the ECB’s efforts to collaborate with the private sector through its Digital Euro Market Advisory Group, and we encourage continued close collaboration on all future phases of the digital euro project.