The consulting division of IBM has published a document with a list of suggestions for the digital euro, the upcoming digital currency in Europe.
The likelihood of a digital currency in Europe has gone up with multiple strategies by the European Central Bank. The European Commission had also proposed legislative proposals for the digital euro in 2023. Subsequently, the European Central Bank welcomed the proposals.
But the digital euro has also attracted suggestions from the private industry recently. IBM Consulting is in the news for releasing a document on the digital currency of Europe. The firm has offered five suggestions in detail throughout the document.
It started with the first proposal, which advised building the digital euro on existing rails. But it supported any enhancements wherever it was required.
“We see a need for a more granular ecosystem of intermediaries. The future intermediary landscape for the digital euro should be envisioned as multi-level. Planning for more than one intermediary between the retail user and ECB’s digital euro components would better support smaller intermediaries,” said IBM Consulting.
Moreover, it also moved for the standardization of APIs. It would lead to better competition and simplify integration, it claimed. For transaction privacy, the company suggested extending strong offline privacy guarantees to online activities. It explained the aspect of privacy in great detail through illustrations of a privacy pyramid.
It stated how digital ledger technology provides major benefits for the digital euro. It said it posed advantages through interoperability, innovation, privacy, and resilience. The consulting firm also proposed building a minimum viable digital euro and listed its benefits.