- EUROChain is a working group of the European Central Bank (ECB), bringing together financial technology specialists from 18 National Central Banks
- In its December Infocus Paper, EUROChain presents a proof of concept of what could be the future CryptoEuro, or EuroCoin
- Based on a Corda architecture, the initiative is supported by Accenture and R3 Blockchain
- Secure, fast and anonymous, a CryptoEuro would literally offer the characteristics of an electronic cash currency
EUROChain, a European banking task force
EUROChain, also named European Central Bank Innovation Lab presents itself as a working group bringing together 18 specialists in the banking field, coming from as many countries, and who work collectively to define and anticipate the evolutions in the field of FinTech (Financial Technologies) for the benefit of the European Union.
Who says FinTech banking in 2019, necessarily thinks Shared Registry Technologies (DLT), blockchain and cryptocurrencies. If this last term never appears in the 11 pages of the document (no more than that of Bitcoin, you think), it is however around this heritage that this study is organized by proposing the contours of a European cryptocurrency inexpensive to use, fast, efficient and as anonymous as regulatory constraints can allow AML / KYC
A CryptoEuro, as close as possible to the functioning of cash
If we do not forget that the work of EUROChain is intended to inform the strategic decisions of the ECB, and of the executives of the European nations, the proposals of the financial laboratory embody simple suggestions.
However, CryptoEuro could have the ambition to literally replace cash. As such, it should espouse the main natural characteristics, and follow a Proof of Concept based on 4 main principles:
- A cryptoEuro should have characteristics similar to that of cash. The confidentiality users should be guaranteed for low value transactions, and detention will not generate interest
- The design is built around intermediaries in a two-tier model. Rather than welcoming and providing direct service to CryptoEuros users, the central bank will rely on intermediaries who have access to their accounts and will be able to interact with the reserve balances held at the central bank to provide CryptoEuro to users. Intermediaries process transactions on behalf of their clients and offer them
- The central bank is the only entity that is authorized to issue CryptoEuro units and them remove Traffic.
- a “AML authority ” dedicated performs compliance checks. It verifies the identity of users involved in major transactions and prevents the transfer of CryptoEuros to users under embargo.
A simple force of proposal, EUROchain has nevertheless surrounded itself with solid technological and financial partners. If the Proof of Concept is built on an architecture Corda, all of the tests were run with assistance Accenture and of R3 Blockchain, two sizes in the sector.
If the works and the Proof of Concept of EUROChain do not exactly prefigure the reality of the final functioning of the future European electronic currency, the ECB’s LAB Innovation studies probably determine the essential. Good news, even as around the world, the great powers are engaged in a race for electronic money, the winners of which will partly determine the international monetary order of tomorrow, the European Union seems able to position itself favorably .
Nice to meet you, it’s Hellmouth! Editor-in-chief of Bitcoin, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
Did you not like the article? Do you want to give me your opinion on a subject, or offer me one? You can come and bawl like a polecat or pour out on my LinkedIn profile, on Facebook, or Bitcointalk