IBM has outlined key factors for the successful adoption of the digital euro in a recent blog post.
1. **Build on Existing Infrastructure**: Leveraging the existing payments infrastructure is crucial for the initial success of the digital euro. While the European Commission's plan already touches on this, IBM suggests extending and enhancing this aspect.
2. **Simplicity and Familiarity**: The digital euro should be simple and familiar to users, facilitating initial adoption. This aligns with the idea of providing a user-friendly experience for individuals accustomed to traditional forms of payment.
3. **Role of Intermediaries**: Intermediaries play a role in facilitating acceptance of the digital euro. The currency's design should accommodate the needs of these intermediaries to ensure smooth integration and support for a diverse ecosystem.
4. **Granular Intermediary Ecosystem**: IBM proposes creating a more intricate network of intermediaries. By planning for multiple intermediaries between retail users and the ECB's digital euro components, smaller intermediaries can be better supported.
5. **API Standardization**: Standardizing APIs would simplify integration and promote healthy competition, making it easier for various services to interact with the digital euro.
6. **Privacy Considerations**: IBM advocates extending strong offline privacy guarantees to online transactions, ensuring end-to-end transaction privacy. This approach needs to be harmonized with existing regulations.
7. **Blockchain Benefits**: While not essential, blockchain technology can offer significant advantages for the digital euro. IBM suggests that the technology need not be more carbon-intensive than non-blockchain systems.
8. **Start with MVP and Sandbox**: Starting with a minimal viable product (MVP) enables a faster time-to-market. Additionally, creating a sandbox environment can help address the complexities of the digital euro's operational environment.
