The latest edition of Oaklen Consulting's sector watch highlights several reports dealing with the Euro digital.

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The Bank for International Settlements (BIS) describes in a report drafted in collaboration with 7 central banks the basic principles and essential characteristics of a Central Bank Digital Currency (CBDC). The report insists on some of the characteristics expected from a CBDM system (security, instantaneousness, resilience (off-line), low cost...) in order to respect the principles of monetary and financial stability, as well as the coexistence with other forms of money. Furthermore, the report considers that there can be no "universal" CBDM, since money is in essence a reflection of a domestic or regional context.

The European Central Bank publishes a report on a Digital Euro, launches a public consultation on the subject and announces a decision on whether or not to launch a Digital Euro programme in mid-2021. The report details:

• The 14 functional requirements that a Euro Digital should meet;
• The adaptations to be made to the legal framework to allow the issue of a Euro Digital ;
• The technical and structural foundations of a future Euro Digital: (i) an infrastructure, which even if partially decentralised, remains under the control of the ECB, (ii) the distribution of Euro Digital must be open to private structures, (iii) its use respects the principles of strong authentication and (iv) the integrity of the data exchanged must be guaranteed.

Researchers linked to Facebook Novi have published a paper demonstrating that it is possible with a blockchain based on the Byzantine Fault Tolerant (BFT) algorithm "in laboratory conditions" to achieve processing performance equivalent to that of a card payment network.

For more information and the complete watch: contacteznous@oaklen.eu

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