German Savings Banks Finance Group Plans to Invest 200 Million Euros in Implementing Digital Euro
The German Savings Banks Finance Group has disclosed plans to allocate approximately 200 million euros towards the implementation of the digital Euro. Joachim Schmalzl, a Member of the Board of the German Savings Banks and Giro Association (DSGV), shared this information during the Handelsblatt conference on Future Retail Banking. The estimation of this expenditure was derived from the draft law proposed by the EU Commission, alongside initial assessments conducted internally by the DSGV. Schmalzl emphasized that the anticipated digital Euro, expected no earlier than 2027, would facilitate access to central bank money in a digital format. The present access to central bank funds is predominantly reliant on cash, a method that is gradually waning in popularity. Approximately a year ago, the EU Commission presented a legislative initiative for the digital Euro, mandating its acceptance in both brick-and-mortar stores and online commerce platforms. The outlay of 200 million euros is deemed manageable for the public sector, considering that the nearly 350 savings banks within the group collectively generated profits amounting to 17 billion euros prior to tax deductions in 2023. Additionally, state-owned banks within the group also reported favorable financial outcomes. Schmalzl underscored the crucial challenge posed by the intricate IT capacities needed for the successful execution of the digital Euro. He warned that should the savings banks heavily engage their resources in this endeavor, it could potentially stall innovation in other payment systems for an extended period of two to three years. Consequently, the emphasis would solely shift towards the implementation of the digital Euro, leaving little room for advancements in alternative financial technologies.
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