- The EU signed a broad package of agreements with Switzerland. How does this tie up with the digital euro initiative?
- The ECB is also currently working with Madrid’s ONCE Foundation to enhance the accessibility of the digital euro, especially for people with disabilities and the elderly.
The European Union (EU) is ramping up the development of the digital euro to meet its planned pilot launch by 2027. On Monday, Ursula von der Leyen, President of the European Commission, and Guy Parmelin, President of the Swiss Confederation, inked a broad package of agreements to deepen the EU-Switzerland cooperation.
With the tight deadline for the digital euro fast approaching, some are wondering if the accord is related to the upcoming Central Bank Digital Currency (CBDC).
EU and Switzerland’s Enhanced Agreement
According to the European Commission, the package aims to establish a modern framework for enhanced collaboration between the EU and Switzerland. It centers on setting up frictionless access to their markets, serving over 460 million consumers across their jurisdictions.
The agreement aligns the EU and Swiss standards and rules on trade, cross-border supply movement, and legal clarity. The parties believe that harmonizing the said elements will optimize the economic benefits of both sides.
The understanding never explicitly mentioned anything about the digital euro. However, given the partner’s “economic cohesion” goals, it makes sense to view the agreement as a foundational step toward their broader digital integration.
It’s worth noting that although the euro is not Switzerland’s legal tender, a significant number of Swiss businesses accept the currency—albeit at marked-up conversion fees. A smooth infrastructure for euro-to-franc conversions within a unified digital framework could drastically reduce their exchange costs.
ECB to Make Digital Euro App Accessible for People with Disability
Meanwhile, the intergovernmental entity’s central bank, the European Central Bank (ECB), has also partnered with the Madrid-based ONCE Foundation for Cooperation and Social Inclusion of People with Disabilities. Their goal is to make an app for the upcoming CBDC that’s accessible to everyone, particularly people with disabilities or “limited” digital skills and the elderly. ONCE will provide technical advice on the app’s accessibility requirements to develop a workable development framework.
After that, ONCE will work closely with the ECB on the app’s design. Upon completion, the institution will assist the ECB in testing the product’s prototype.
Piero Cipollone, an Executive Board Member of the ECB, highlighted that the core design principles of the digital euro should prioritize accessibility and inclusion. He emphasized that these features should not be merely optional to ensure that the CBDC goes beyond the EU’s bare minimum legal accessibility requirements.
Furthermore, the ECB board member noted that their partnership with ONCE will empower everyone to benefit from the digital euro. This prepares it for full implementation by mid-2029.
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