Central Bank Digital Currencies and the European Framework for Payments: Friends or Foes?

Central bank digital currencies have triggered important theoretical, policy-oriented questions and normative concerns regarding their integration within the current set-up of the payment system. This chapter conceptualises the links between the digital euro project and the European framework for payments by, first, focusing on fundamental trade-offs and policy choices; second, taking stock of the European harmonisation process for payments in which the digital euro is embedded; third, analysing how potential design choices for a digital euro could be coordinated with the current legal set-up for payments and possibly address some open regulatory issues; and finally, assessing the impact of a digital currency on central banking payment oversight tasks. © 2024 Taylor and Francis.