Two consumer groups, AGE and BEUC, have expressed concern about the lack of consideration of financial inclusion in the development of the digital euro. AGE is concerned that financial inclusion is an afterthought in central bank digital currency (CBDC) design. BEUC is concerned that using the same intermediaries, such as banks, is unlikely to achieve better financial inclusion outcomes. Part of the problem is the focus on smartphone use.

AGE and BEUC expressed their views as members of the Euro Retail Payments Board (ERPB). It provides strategic information for eurozone payments and is made up of staff from the European Central Bank (ECB), payment providers and euro user groups.

AGE is concerned that the digital euro is unintentionally exclusive

“We fear that dealing with inclusion as a separate thread towards the end of the project development process will be very challenging and counterproductive,” AGE wrote.

“Financial inclusion issues should have been integrated into all discussions and certainly before major decisions were made on some options that could now (unintentionally) result in financial exclusion. Relying on PSPs (Payment Service Providers) to better understand the needs of end users is the wrong approach if the purpose is to develop a “public money” digital payment instrument.

The organization requested focus groups to include older age groups.

BEUC is not interested in existing intermediaries for distribution

BEUC, the umbrella body for 45 European consumer groups, said existing intermediaries, such as the banks that will distribute the digital euro, will not improve financial inclusion. The current system poorly serves vulnerable groups, including those without access to a bank account, people with disabilities, the digitally illiterate, and the elderly.

You want to see financial inclusion goals included in the criteria for CBDC intermediary selection. But he would actually prefer the central bank to distribute the CBDC, as he believes that would promote financial inclusion.

He also wants the digital euro to guarantee the same privacy as cash. That would make it difficult to implement anti-money laundering regulations. While the ECB has said it would not access personal data, intermediaries will have the data, which is not the case with cash. The BEUC highlighted that open banking is often presented as the only option that effectively forces consumers to share their data.

The prioritization of smartphone apps to reach the widest audience has also raised issues. “A solution with low or no technical requirements (for example, accessible to consumers who do not own a smartphone) should be prioritized to achieve financial inclusion,” BEUC said.

Comments from AGE, BEUC and other ERPB members were published alongside an agenda for a digital euro ERPB session held yesterday.

A secret meeting of decision makers on the digital euro?

In addition to yesterday’s ERPB digital euro meeting, there was a meeting of Eurozone central bank governors in Finland, where the digital euro was discussed. The meeting was publicized, but the agenda was not. Politco had the scoop.

Meanwhile, eurozone finance ministers released their policy positions on the digital euro last month. The bottom line is that they don’t want a programmable digital euro where use can be restricted in any way (such as spending only on food). The ERPB’s comments agree with this position.