Electronic transfers

ECB Expands Electronic Payments Supervision to Digital Wallets and Cryptoassets

The European Central Bank has approved a new electronic payments oversight framework that will include coverage for stablecoins and other crypto assets.

The new oversight framework assesses the security and efficiency of electronic payments and will be used by the ECB to oversee businesses enabling or supporting the use of payment cards, wire transfers, direct debits, e-money transfers and tokens. digital payments, including electronic wallets.

The framework will also cover services related to crypto-assets, such as the acceptance of crypto-assets by merchants as part of a card payment system and the ability to send, receive or pay with crypto. -assets via an electronic wallet.

“The retail payments ecosystem is changing rapidly due to innovation and technological change. This requires a forward-looking approach in the supervision of digital payment solutions, ”said Fabio Panetta, member of the ECB’s executive board. “The PISA framework will include digital payment tokens such as stablecoins, as well as traditional payment instruments and schemes in which we have gained experience over the years. Coordinated action at the international level will also need to be strengthened to address the challenges posed by global digital payment solutions and stablecoins. “

He says the new approach complements upcoming EU regulations on crypto-assets (including stablecoins) and international standards for global stablecoins.

Businesses already subject to the ECB’s regulatory scope will have to adhere to the new rules by November 2022. Other businesses will have a grace period of one year from the time they are notified that they are subject to surveillance under the new rules.