- The ECB’s digital euro enters a new testing phase focused on voice-activated payments for enhanced financial accessibility and inclusion.
- Legislative proposals aim to grant offline digital euro transactions a cash-like level of privacy, unlike trackable private payment systems.
The European Central Bank announced a new phase of testing for a digital euro. This phase will examine voice-activated payment systems. A report published on September 26 details the plan to use voice commands for financial actions.
The central bank launched its digital euro platform in October 2024. The goal is to maintain monetary sovereignty as digital payments become more common. Nearly seventy entities participated in the first phase. These participants included banks, financial technology companies, and merchants.
The new voice payment feature is intended to assist individuals with visual or hearing impairments. It is also designed for people with limited experience using digital tools. The system would require a personal identification number or biometric data to confirm transactions.
It would support multiple languages. The European Central Bank’s report did not mention specific influences. However, the functionality resembles voice payment systems already available, such as the one from China’s Alipay.
Testing will now move to simulated environments. These tests will attempt to replicate the experience of using physical cash. They will incorporate both audio and visual signals. A member of the bank’s executive committee, Piero Cipollone, stated that market participants have shown strong interest in the digital euro’s potential.
The technical tests are occurring alongside legislative discussions. The European Parliament is reviewing a proposal for the digital euro’s regulation. One objective outlined in the proposal is to offer a level of privacy for offline transactions similar to that of cash. According to known details, the system would not track individual payments.
Service providers would access personal information only when required by law, and with user consent. This approach differs from private systems like credit cards, where companies use payment data for commercial purposes.
