ECB to fund creation and operation of digital euro without charging fees

The European Central Bank together with euro-area national central banks intend to assume all expenses for building and running the core infrastructure of the digital euro, and they will not impose any fees on the system or on transaction processing, according to executive board member Piero Cipollone in a video conference organized by MNI. He explained that the initiative follows a sustainable economic model and that payment-service providers will receive compensation for the services they provide.

The digital euro is designed solely as a means of payment, will not generate interest and will be subject to limits on how much each person can hold. To enable larger payments, the ECB proposes that digital euros be linked to a commercial bank account so any shortfall can be covered from that account. Legislative discussions are ongoing, with the European Council pressing for a conclusion before year-end.