European Central Bank today released a comprehensive terminology framework for its digital euro scheme. The framework defines key terms—including refund, remote payment, reservation, request to pay, and settlement instruction—and outlines payment types, participant roles, and security components. It specifies procedures such as verifying payer balance, setting standing orders for recurring payments, and applying strong customer authentication with multiple independent factors. The framework introduces a “waterfall” mechanism that automatically converts digital euro balances that exceed a user‑specified limit into commercial bank money on a linked account. It also describes user‑centric features like pseudonymous aliases, wearable device categories, and privacy‑focused authentication methods. The document contains annexes on testing, certification, risk management, and a rulebook change request form, and concludes with a draft notice indicating the material is provisional.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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