TAS: Working with Banks to Address Open Questions on the Digital Euro
The journey toward the Digital Euro has begun, but banks still need clear answers regarding the opportunities and challenges of the new Central Bank Digital Currency (CBDC). For this reason, TAS has decided to meet with financial institutions to discuss how to integrate the new digital currency while mitigating investment impacts and creating value-added services.
“Technological evolution drives change in payment services: digital currencies have emerged, so moving toward the Digital Euro is a natural step,” says Odisseo Di Michele, Business Development Manager at TAS. “Moreover, those operating in crypto-assets today rely on private and high-risk networks that could easily collapse in the event of a speculative bubble. As a result, they are not viewed favorably by supervisory authorities, which must ensure stability, reliability, and resilience in payment systems within their respective markets. Having a Eurozone currency will also reduce dependence on major global digital payment networks, which have cost implications for the system’s resources.”
The First Challenges to Address
However, some critical issues also emerge for banks. The first concerns the cost of implementing new Digital Euro payment services, which must be included in budgets while also assessing the return on these investments.
“Another critical aspect is linked to the fact that digital currency is a form of payment similar to cash,” Di Michele continues. “The amount of digital currency citizens hold in their wallet is withdrawn from the current accounts linked to the Digital Euro app, thereby reducing the bank’s overall funding availability.”
How Many Digital Euros in the Wallet?
Discussions are ongoing between the ECB and banks regarding the maximum holding limit. The Central Bank is leaning toward a threshold of €3,000, while financial institutions would prefer a limit of €1,000.
“The main feature of these Digital Euro accounts (wallets) is that they must be funded via a link to one or more current accounts held by the customer, who can choose which account to draw from,” explains Di Michele. “However, the maximum cap — whether €3,000 or less — will be tied to the individual’s wallet, not to each associated account.”
The Path Paved by Instant Payments
While seeking a balanced solution between the two positions, the ECB recognizes that it cannot move forward without banks and the trust-based relationships they have built with consumers over the years, continuing to innovate in digital payments.
“The introduction of the Digital Euro, and more broadly services based on DLT technologies, confirms and consolidates the now unavoidable trend toward implementing instant payment services available 24/7/365,” Di Michele notes. “Another use case involves offline payments, similar to cash payments — anonymous and untraceable — activated through communication between two devices when there is no network connection.”
Strategies and Investments to Consider
To fully leverage the Digital Euro’s innovative potential, banks may consider adopting shared system-wide platforms, upgrading their existing payment management platforms, or implementing new infrastructures dedicated to these new services.
“Our Payments Hub integrates all payment services, and thanks to an advanced technological platform, we will integrate Digital Euro payment services as well,” says Di Michele. “This is a journey that began with the introduction of instant payments last October and continues with the Digital Euro. This infrastructure enables the management of DLT-based mechanisms and new networks, starting with the management of the new Digital Euro account. The goal is to provide banks — and their end customers — with features to control and modify daily or monthly usage limits of the account linked to the wallet, as well as treasury management functionalities. In addition, we are developing solutions for the offline operation of devices connected to the Digital Euro wallet.”
Finally, TAS is working to facilitate the introduction of Digital Euro payment services within treasury management and the Public Administration sector, which will need to adapt to accepting payments in Digital Euro.
DLT for Eurosystem Payment Systems
In July 2025, the ECB approved a blockchain strategy structured around two projects: Pontes, a short-term solution to connect DLT platforms with the Eurosystem’s payment systems, and Appia, a long-term initiative aimed at creating an integrated European ecosystem for the settlement of tokenized assets.
This represents a response to dependence on foreign infrastructures and the spread of dollar-denominated stablecoins to strengthen European autonomy in digital payments.
“This strategy aligns with the evolution of settlement services provided by the ECB,” Di Michele concludes. “With the Pontes project, DLT-based services are being further expanded.”
Original source: article by AziendaBanca
