CaixaBank has co-developed with the European Central Bank a prototype wallet for person-to-person payments with the digital euro.
The bank was selected in September by the European Central Bank (ECB) as part of an international call aimed at payment service providers, banks and other relevant companies for the creation of payment service prototypes as part of the research phase to prepare for a possible launch of the digital euro. CaixaBank was the only bank chosen to participate in this ECB initiative.
CaixaBank, with extensive digital capabilities that have made the bank an international benchmark in financial services and innovative means of payment, was commissioned to develop a possible solution for person-to-person (P2P) payments.
Caixabank’s app presented to the ECB
The proposal submitted to the ECB is based on a mobile application in which the user could easily view his or her balance in digital euros and the movements made. In addition, the app would also allow users to send digital euros or request pending payments to other people in the euro area. To simplify its use, the development could be integrated into financial institutions’ digital banking applications.
The service would offer added benefits in areas such as privacy. In the prototype, as users of the digital euro, each customer would have an alias and this reference would be sufficient to use the payment service. In this way, it would be possible to send or receive payments without necessarily having to share details such as phone number, e-mail address or bank account IBAN. However, to facilitate the use of the service, it would also be possible to send money to the customer’s stored personal contacts. In addition, the European Central Bank would not have access to private information on payments made in digital euro between users.
ECB: summary of the prototype and conclusions
The European Central Bank has carried out a prototyping exercise to test how possible design proposals for the digital euro could be technically implemented and integrated into the current European payments landscape. The tests have shown that simple integration is possible, while at the same time opening up ample scope for the development of innovative tools and technologies.
In its prototype summary document, published today on its website, the ECB concludes that, according to the studies conducted, a digital euro would work both online and offline, using independent designs, which would increase its resilience.